Today I had a brief conversation with a Surrey business owner that due to an unexpected turn of events he gets to keep the business debt, but losses the business. In life these things happen and are never fun. So if this ever happens to you or someone you know it is important to understand the protection some of your assets have built in.
Some assets and investments are creditor protected, meaning in many cases you can go through bankruptcy and keep these assets. If you find yourself in this situation it is important to speak with a lawyer before attempting it, but too often people sell these assets when they get into trouble, not knowing these assets could have been saved.
Some of these assets are (in British Columbia):
- Pensions;
- RRSP’s;
- Segregated funds;
- Life Insurance; and
- Assets in spouses name (sometimes).
This is not written to be a guide, but to let people know there are options in these stressful situations, and before selling off assets, seek legal and financial advice. With proper planning you may be able to land quickly on your feet and skip much of the stress.
This entry was posted on Thursday, May 6th, 2010 at 9:33 am and is filed under Business, Financial, RRSP. You can follow any responses to this entry through the RSS 2.0 feed.
