June 21st, 2011 by Questions
can i save my kids resp in case of proposal
Posted from: Ontario
June 21, 2011 at 6:18 am, A licensed trustee said:
Certainly – when you file a cnsumer proposal things like your RESPs, RRSPs, investments, etc are normally excluded.
In order for a proposal to be accepted there are two tests you need to pass. The first is the amount you offer must be greater than the amoutn your creditors would receive if you filed for bankruptcy. In a bankruptcy, the things I listed above (like your RESPs) might be cashed out, so the value of your RESPs will impact how much money you are going to have to offer in your proposal, but the RESPs themselves will not be touched.
The second test is that you must offer your creditors enough money for them to accept your proposal. Currenlty that is around 1/3 of what you owe.
A final comment: make sure you are actually dealing directly with a trustee for your consumer proposal. There are a lot of “debt consulting” companies advertising consumer proposals that cannot provide the service – they charge you a fee and then refer you to a trustee. Save your money and deal directly with a trustee…
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