Dec 20, 2025
If you’re carrying serious debt but also have money in an RRSP, TFSA, or other investments, one of the biggest fears is this: Will I lose everything if I get help?
Doug Hoyes and Ted Michalos, Licensed Insolvency Trustees, break down what actually happens to your investments when debt becomes unmanageable. They explain which assets are protected under Canadian insolvency law, which are at risk, and when cashing out savings can do more long-term harm than good.
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Bankruptcy & Insolvency Act, paragraph 67
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(00:00) Debt and investments: will savings survive serious
debt?
(02:10) The fear of “losing everything” when seeking debt help
(04:20) Pressure to cash in investments before asking for help
(06:30) Using a TFSA to pay debt: when it makes sense
(09:10) RRSP withdrawals and the real tax consequences
(12:45) Why multiple RRSP withdrawals don’t reduce total tax
owed
(15:30) What happens to RRSPs and pensions in bankruptcy
(18:40) Which investments are not protected in
insolvency
(21:30) Consumer proposals vs. bankruptcy: what you keep
(24:30) Can you still invest while repaying debt?
Disclaimer:
The
information provided in the Debt Free in 30 Podcast is for
entertainment and informational purposes only and is not intended
as personal financial advice. Individual financial situations vary
and may require personal guidance from a financial professional.
The views expressed in this episode do not necessarily reflect the
opinions of Hoyes, Michalos & Associates, or any other