Personal Finance

Can a private debtor who has judgement against you, garnish an RRSP or a non-registered GIC account?

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  • Dec 5th, 2018 1:03 pm
Deal Addict
Nov 9, 2017
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Can a private debtor who has judgement against you, garnish an RRSP or a non-registered GIC account?

Hello,

I have read here that CRA can garnish anything and everything including RRSP: https://dioguardi.ca/yes-cra-can-seize- ... r-savings/
But is garnishment possible in case of private debtors too who hold a judgement?

Thanks,
12 replies
Deal Addict
Nov 30, 2011
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Non-registered = Yes.

Registered = Depends where you live. British Columbia, Alberta, Saskatchewan, Manitoba, Prince Edward Island, and Newfoundland and Labrador specifies RRSP and RRIF assets are generally protected from creditors. Other jurisdictions might provide protection under certain circumstances.

From: https://www.theglobeandmail.com/globe-i ... cle549663/
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Sep 30, 2001
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Let's all try it again. If you have helpful advice directly related to the op's question please participate
Be kind and civil with one another
Deal Addict
May 12, 2014
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If you have a judgement, for example from small claims court, you can certainly seize funds from any non-registered account.

Also be aware that safety deposit boxes can be seized.

And judgements can be registered against your property (eg house) as a mortgage.
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Nov 9, 2017
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westcoastyvr wrote: Non-registered = Yes.

Registered = Depends where you live. British Columbia, Alberta, Saskatchewan, Manitoba, Prince Edward Island, and Newfoundland and Labrador specifies RRSP and RRIF assets are generally protected from creditors. Other jurisdictions might provide protection under certain circumstances.

From: https://www.theglobeandmail.com/globe-i ... cle549663/
Thanks for the article. Seems like a lot of rules and very complicated. Have to take the time to read it. Doesn't give me any confidence when it's this complicated because there are always loop holes etc...I wonder how business risk takers mitigate these sorts of risks and keep up with all the rules.

So GICs can be garnished right away or at maturity?
Registered assets can not be garnished period or they can be garnished at maturity too?
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May 12, 2014
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snowhite445 wrote: I wonder how business risk takers mitigate these sorts of risks and keep up with all the rules.

Are you trying to deal with an existing judgement against you, or are you trying to protect yourself against a potential issue?

Businessmen mitigate this risk in different ways (alone or in combination): insurance, Incorporation, placing assets in a spouse's name, trusts, etc.

But obviously this must be done BEFORE an "event".
Deal Addict
Nov 9, 2017
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FrancisBacon wrote: Are you trying to deal with an existing judgement against you, or are you trying to protect yourself against a potential issue?

Businessmen mitigate this risk in different ways (alone or in combination): insurance, Incorporation, placing assets in a spouse's name, trusts, etc.

But obviously this must be done BEFORE an "event".
No judgement. But planning long term.
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Apr 16, 2007
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snowhite445 wrote: No judgement. But planning long term.
If there is no financial judgment against you(or none coming down the pipe) then why even query about the legal reach of a garnishment order?
No one and I repeat no one who is financially sound or who does any sort of financial planning questions if their RRSPs or a non-registered GIC account can be garnished.
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mikeymike1 wrote: No one and I repeat no one who is financially sound or who does any sort of financial planning questions if their RRSPs or a non-registered GIC account can be garnished.
I'm sorry but that's just flat wrong, and dangerous.

Anyone planning on starting any kind of business should first think of "what will happen if it fails? How bad could things get? "

Knowing precisely which assets you might be able to keep post judgement or bankruptcy could radically alter which business risks you'll take. Or indeed if you're willing to take any at all.
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Apr 16, 2007
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FrancisBacon wrote: I'm sorry but that's just flat wrong, and dangerous.

Anyone planning on starting any kind of business should first think of "what will happen if it fails? How bad could things get? "

Knowing precisely which assets you might be able to keep post judgement or bankruptcy could radically alter which business risks you'll take. Or indeed if you're willing to take any at all.
Read much??
This is not about a business. This is about a judgement creditor who has been awarded a judgement and if that judgement can be executed for a garnishment order against RRSPs and/or non-registered GIC's
Last edited by mikeymike1 on Dec 4th, 2018 11:50 pm, edited 1 time in total.
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mikeymike1 wrote: If there is no financial judgment against you(or none coming down the pipe) then why even query about the legal reach of a garnishment order?
No one and I repeat no one who is financially sound or who does any sort of financial planning questions if their RRSPs or a non-registered GIC account can be garnished.
Theres one situation I can think of... severe disability of a person who once had a good career and life.
They worked for years as a good law abiding citizen. They contributed to their RSP, paid taxes, went to work. etc etc...
Then tragedy happens. Your arms and legs were chopped off by Donald Trumps hench men. You try desperately to find work... but it proves difficult with both your arms and legs chopped off.

You run up your credit card debt trying to pay bills and rent... But you fall further and further behind. Until it gets to the breaking point...youre getting sued left right and center by creditors.
But you have nothing left but your measily $1400 disability check that barely pays rent... food... let alone medical requirements.
You remember you have your RSP from work that you've build up over the years... You hope you can use this for food and shelter while you contemplate bankruptcy and what to do.


There are legit reasons... You'd be surprised how often it happens.

REmember the Bronco hockey team where everyone died or got severely disabled? Imagine alll the other car accidents or injuries we don't hear about...
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May 12, 2014
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mikeymike1 wrote: Read much??
This is not about a business.
The OP didn't specify the source of his fears. And he specifically asked about businesses. And he specifically said it's about planning.

Of course a judgement creditor can be anyone: business partner, dissatisfied customer, unpaid supplier, mailman bitten by dog,...

But in all cases planning ahead is worthwhile.
Deal Addict
Nov 9, 2017
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FrancisBacon wrote: The OP didn't specify the source of his fears. And he specifically asked about businesses. And he specifically said it's about planning.

Of course a judgement creditor can be anyone: business partner, dissatisfied customer, unpaid supplier, mailman bitten by dog,...

But in all cases planning ahead is worthwhile.
Side note: FrancisBacon, reading your replies vs mikeymike1 and UrbanPoet, I think your personality is much closer to UrbanPoet than mikeymike1 LOL

@mikeymike1 - there are people who dig deeper in a more detailed ways than most of rest of the population. When you take business risk, you must think about bankruptcy and when you think of that you do think about garnishment etc...this is really ABCs of business.

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