bankruptcy will affect RRSP /RESP accounts as well?

June 15th, 2007 by Questions

wonder if the dad file the bankruptcy, his RRSP contribution will be protected or will be affected? and also, who is the ownership of RESP? the beneficial of RESP account is his kids and he makes contribution every year. Wonder if they will be affected as well?

Questions

One Response to “bankruptcy will affect RRSP /RESP accounts as well?”


June 18, 2007 at 8:52 am, Barton Goth GCO Bankruptcy Trustees said:

You can anticipate that both the RRSP and the RESP will be lost as neither of these are considered to be an asset that is protected and therefore in a bankruptcy will be liquidated and the funds distributed as required in the Bankruptcy and Insolvency Act.

Although this is the norm in some instances RRSP’s can be considred exempt. This is rare and difficult to determinve from the info you presented so you are best to contact a local trustee and they will be able to clarify which category the RRSP will fall into.

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