How to protecxt my childs RESP?

Posted on Tuesday, May 27, 2008

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I have read on your`s and other sites that if you file for bankruptcy you automatically loose your child`s RESP. This is wrong and shouldn`t happen. This money is not for me it is for my childs education and I will not consider doing anything tha twould put these at risk. What are my options?

Filed under: Consumer Proposals and Bankruptcy
 posted by Questions @ 10:31 pm
1 Expert Comment:

 At May 31, 2008 | 8:05 am , Barton Goth GCO Bankruptcy Trustees Said...

Currently if you file for bankruptcy any RESP’s are lost and any actions you take to try to transfer ownership or anything to try to protect these assets you will have committed an offense under the Bankruptcy and Insolvency Act, you will still loose the investment and will not be eligible for discharge.

There are two things you can do to prevent this. The first is file a consumer proposal instead of a bankruptcy. With a consumer proposal there is no vesting of assets as there is in a bankruptcy. The other option is if you file for a bankruptcy you can discuss with your trustee the possibility of you buying back the investment out of the bankruptcy estate.

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