FILL OUT THE FORM BELOW AND RECEIVE A NO-OBLIGATION CONSULTATION

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If you have unsecured debt of under $10,000 and live in the Province of Ontario filing bankruptcy may not be the best option for you. We suggest you contact the Office of the Superintendent of Bankruptcy at 416-973-6441 to discuss your options, or you can visit their website here.

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Gift to Family Member

In January, 2007, I participated in the Government of Canada’s Home Buyer’s program which allows an individual to make an RSP withdrawal to help a disabled family member purchase a home. I used this $20,000 withdrawal to help my disabled father buy a new home when he needed to move due to his disability. I also provided him with some cash at the same time. It was not a problem as I had a great job at the time.

I, too, have now become disabled (which was not foreseeable back in 2007) and am considering filing a consumer proposal. Providing this gift to my father was not an attempt to dispose of assets as my health problems were unexpected. I was simply trying to help my family who has been helpful to me when I needed it.

Because I gave this large gift to a family member, will I be prevented from filing a consumer proposal or other alternative? Will there be any penalties as a result of the gift?

Thank you for your help.

Posted from: Nova Scotia

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One Response to “Gift to Family Member”

A licensed trustee said...

I don’t think you need to worry about the gift to your father. Bankruptcy rules require trustees to look at gifts to unrelated people going back 12 months and related people 5 years. 2007 was 6 years ago so you should be clear…

Just be certain to ask whichever trustee you are seeing this question BEFORE you file.