June 21st, 2006 by Questions
I was wondering what happens to things like RESP\’s and Life Insurance that are set up as Joint Subscribers and only one of the Subscribers files for bankruptcy?
June 21, 2006 at 10:00 pm, Barton Goth, GCO Inc. Bankruptcy Trustees said:
Essentially 50% of these assets would relate to the party that files for bankruptcy, so depending on the asset you should find that only 50% of it is seized and made available to the creditors. However, if you could trace the contributions to one party (i.e. the party who files for bankruptcy was the individual who filed for bankruptcy) it is possible that all the funds would have to be seized. You may also want to consider filing a proposal as this is often a good way to retain some of these types of assets.
For more information I recommend contacting a licensed trustee in your area as there can often be significant regional differences.
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