March 16th, 2010 by Questions

My dad has recently become Ill and my sister and I are now trying to look after him as well as his finances.
He has $14000 owing in credit cards and the same in a line of credit. So owes just under $30,000. He has $20,000 still in an RSP account.

He also owes $130,000 on his house but due to his medical situation we will be putting his house up for sale and having him in assisted living.

Basically I am wondering if we declare bankruptcy for him ( we are his power of attorney) Will he lose his RRSP or his house if we dont put it up for sale?? If we do and have the funds gifted to us is that a better alternative??


Posted from: Ontario


One Response to “Help!!”

, A licensed trustee said:

I think your situation is unique enough that you’d be better off using the links on this site to find a trustee in your area so you can give them a call.

Whether or not your father may lose the house if he files for bankruptcy depends on whether or not their is equity in the house (if it is sold will there be any money left over after the mortgage and closing costs have been paid?). Whether or not he may lose his RRSPs depends on how long the money has been sitting on deposit.

If there is equity in the house then you may want to consider filing a consumer proposal with a low monthly payment (say $100), but a large payout when the house is sold. Just an alternative for you to consider…

Use the links to find a trustee and make the call – it will help.

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