Frequently Asked Questions
Please reach us at information@thematthewfoundation.com if you cannot find an answer to your question.
- What is RDRSP?
- How does the Registered Debt Reduction Plan Work?
How does the Registered Debt Reduction Saving Plan work?
Let’s assume an individual or business has operated in good faith. The entity that utilized your company goods and services and can no longer pay. If that debt becomes delinquent and or enters collections that register R-4-R-9 at the credit bureau. The company that has not been paid recaptures their lost revenue from the debtor who becomes eligible to make contributions to their RDRSP.
If you choose this option instead of filing for bankruptcy or a consumer proposal all payments will be deducted from your gross income.Example: Upon reviewing their household income, it is deemed that this individual can pay $350.00 per month or $4200.00 per year.
Below is how the RDRSP is calculated.
Mr. Smith's yearly wage is $52,600 per year. $52,600.00 Payments made using the RDRSP deduction: $4,200.00 Taxable Income $48,400.00
If this contribution generates a Tax Refund of $5762.00, it could be forwarded to the maximum of their CPP, RRSP, TFSA, LIRA or we could allow Canadians to spend it as they feel fit.
The Matthew Foundation is constantly working on having this New Tax Credit approved by our Government of Canada. A RDRSP petition is being prepared and if you are looking to pay down debt please send us a request and we'll look into every option available.