February 8th, 2010 by Questions
Are RESP`s for the children affected from a Consumer Proposal? Are they taken? I know they are liquidated in a personal bankruptcy, but what about a CP?
Posted from: Ontario
February 09, 2010 at 10:20 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
One major difference with a consumer proposal as opposed to a bankruptcy is that there is no vesting of assets. Meaning, you do not automatically loose any of your assets under the consumer proposal.
However, as a consumer proposal must offer more than a bankruptcy you have to make sure that the RESP’s are considered when determining what you are worth in a bankruptcy and in turn what you need to offer in the proposal.
For more information about how this is done you are best to contact a local trustee and they will be able to help you determine what type of offer you would need to make to your creditors to maximize the chances of success.
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