My husband is looking at filing for personal bankruptcy.
If my husband was to claim bankruptcy how would this affect out childrens RESP?
bankruptcy and RESP`s
Posted on Friday, July 18, 2008
posted by Questions @ 7:24 pm
1 Expert Comment:
At July 21, 2008 |
8:22 am
, Barton Goth GCO Bankruptcy Trustees Said...
This depends on who’s name the RESP’s are held in. If it was under your husbands name they were set up then the RESP’s are lost as part of the bankruptcy. If the RESP’s are in your name then as long as you are not filing for bankruptcy there will be no impact. If the funds are held in both names then 50% of the funds would be liquidated and come into the bankruptcy.
One word of caution, any attempt to transfer or move these funds out of your husbands name will cause him great difficulty and likely result in him not being eligible for discharge in any sort of timely fashion. so the best advice is leave things as they are, consult with a local trustee and follow their advice in how to proceed.
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