Bankruptcy and RESP
September 30th, 2009 by Questions
I`am a self employed businessperson planning to file for bankruptcy. I have few assets the biggest being the RESP that I had kept for my 14 year old daughter. The plan has been in existence for 10 years. My total contributions amount to 11000 dollars. The plan has about 27000 dollars due to good investment choices and the CESG. If I declare bankruptcy will I lose the entire 27000 or only 11000?
Posted from: Ontario
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October 02, 2009 at 12:39 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
If you declare bankruptcy the RESP must be liquidated. This means that your contributions and any potential interest owed off that will be paid into the trustee, and any contributions that were matched by the government go back to the government. The only way to prevent this is if you make arrangements to pay the liquidation value of the RESP to your trustee. For more information on this you are best to contact a local trustee and they will help you to determine if this would be possible.