assets, student loans and bankruptcy.

September 20th, 2010 by Questions

Will the RESP`S that are set up for my daughters be affected?

Are student loans taken care of by claiming bankruptcy?

Thank-you

Posted from: Ontario

Questions

One Response to “assets, student loans and bankruptcy.”



, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

RESP’s are not considered an exempt asset. As a result they are automatically lost upon the filing of a bankruptcy.

For a good summary of why an RESP is not exempt you can read the following post: RESP’s and bankruptcy.

Now student loans are a different issue. The rules for student loans state that if you have been out of school for 7 years prior to the filing of a bankruptcy then they will be cleared upon you being discharged. However, if you have attended ANY classes within that period this serves to re-set the seven year clock.

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