Barton Goth – Goth & Company Inc. -Trustee in Bankruptcy said...
If you file for bankruptcy any RESP’s that you have set aside will be lost. The ultimately will be liquidated and the proceeds will be distributed among your unsecured creditors.
While I may not agree with how these funds are treated in a bankruptcy, the laws are very clear on this, RESP’s do not constitute true trust property and due to the way they have been set up the funds are lost.
If you file for bankruptcy any RESP’s that you have set aside will be lost. The ultimately will be liquidated and the proceeds will be distributed among your unsecured creditors.
While I may not agree with how these funds are treated in a bankruptcy, the laws are very clear on this, RESP’s do not constitute true trust property and due to the way they have been set up the funds are lost.