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How RESPs treated in Bankruptcy?

MY SON-IN-LAW IS CONSIDERING BANKRUPTCY. WILL MY GRANDCHILDRENS’ RESPs, that we contributed to, be taken as part of any settlement?

Posted from: Ontario

One Response to “How RESPs treated in Bankruptcy?”

A licensed trustee said...

Unfortunately, RESPs are NOT protected when a person files for bankruptcy. Most trustees will allow the person filing for bankruptcy to pay an amoutn equal to the RESPs cash-in value, instead of actually cashing them it (of course that means the person has to be able to make those extra payments to their trustee).

Make sure your son-in-law discusses the RESPs in detail BEFORE he files.