Credit Card Default & Late Payment

Question: I am two months late on my credit card debt payments because my business is losing money and I haven’t taken a salary in 8 months. If it goes to collections, I know they can garnish my wages (which are $0 right now) and take funds out of my bank account (which is also close to $0 right now). But can they take my RRSP and put a lien on my house?

Credit Card Debt Right Of Seizure

In most cases RRSPs are exempt from seizure.  In order for a credit card company to be able to put a lien on your house they would first have to sue you, win, and then enforce the judgment through a lien.  That is a very expensive and unusual step for a credit card company to take.

To start, you should open a new bank account at a new bank (where you don’t owe any money), so that you are in control of the funds that you have.  When things turn around and you do have wages that can possibly be garnisheed, we recommend you contact an expert to explore your options.

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