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?
Posted from: Ontario
September 21, 2010 at 9:19 am, 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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