September 11th, 2009 by Questions
Have a RESP for my two children. Lost my job and bankruptcy might have to be a option. Don`t have assets besides RRSP`s. I don`t want to declare bankruptcy but will I be punished if I use my children RESP to stay afloat. I understand I will lose the RESP anyways.
Stuck on what to do.
Posted from: British Columbia
One Response to “RESP”
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September 14, 2009 at 8:49 am, A licensed trustee said:
You may be – your trustee is required to look at all of your financial transactions for a period of time prior to the date you file for bankruptcy (or a proposal). If you cash out the RESPs you may have to provide your trustee with an accounting of what you did with the money and if you did anything “inappropriate” you may be required to make some form or repayment. It literally depends on what you do with the money.