March 11th, 2012 by Questions
MY SON-IN-LAW IS CONSIDERING BANKRUPTCY. WILL MY GRANDCHILDRENS’ RESPs, that we contributed to, be taken as part of any settlement?
Posted from: Ontario
March 12, 2012 at 6:55 am, A licensed trustee said:
Unfortunately, RESPs are NOT protected when a person files for bankruptcy. Most trustees will allow the person filing for bankruptcy to pay an amoutn equal to the RESPs cash-in value, instead of actually cashing them it (of course that means the person has to be able to make those extra payments to their trustee).
Make sure your son-in-law discusses the RESPs in detail BEFORE he files.
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