November 3rd, 2009 by Questions
what will happen to RESP that i invested for my kids?
Posted from: Ontario
November 03, 2009 at 10:14 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
If you file for bankruptcy any RESP’s that you have set aside will be lost. The ultimately will be liquidated and the proceeds will be distributed among your unsecured creditors.
While I may not agree with how these funds are treated in a bankruptcy, the laws are very clear on this, RESP’s do not constitute true trust property and due to the way they have been set up the funds are lost.
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