Bankrupt and child tax

January 24th, 2012 by Questions

Monthly I receive $200 dollars for the child tax credit from the government I put this money towards RESP for my kids will I loose this benifit or their RESP s ????

Posted from: British Columbia


One Response to “Bankrupt and child tax”

, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

As part of the bankruptcy you will continue to receive your $200 from child tax credit. However, as part of the bankruptcy you will lose the contributions you have made to the RESP’s. Unfortunately the government does not allow for these assets to be protected through the bankruptcy. So these funds will be lost.

There are two ways to protect these monies. The first is to make arrangements to pay into your trustee the same amount of money that would be realized if the RESP’s are liquidated. The second option is to look at filing a consumer proposal instead of a bankruptcy.

Please post a follow up comment below:

(Note: comments are reviewed by moderators and then posted after approval. In addition, due to high volume some of the comments might not be posted.)