Cashing in RESP`s prior to bankruptcy

Posted on Friday, May 9, 2008

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I have two children and they each have an RESP that I have set up for them. I am going to have to claim bankruptcy, and wondered what would happen if if we close these RESP’s prior to filing bankruptcy can we still be liable to the trustee for that money?

Filed under: Bankruptcy
 posted by Questions @ 2:08 pm
1 Expert Comment:

 At May 12, 2008 | 7:38 am , Barton Goth GCO Bankruptcy Trustees Said...

This would be a bad idea as this would be considered an offense under the Bankruptcy and Insolvency Act and would result in you a) having to pay the monies back into the trustee, and b) not being eligible for discharge. The best thing to do is leave these monies where they sit and don’t make any attempt to move / maniuplate your current assets as this will be seen as evidence that you are not an unfortunate debtor but someone who is trying to delay/defraud the rights of their creditors.

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