March 29th, 2010 by Questions
Do the recent changes to bankruptcy involving RRSPs also apply to RESPs, or are they still not exempt during a bankruptcy?
Posted from: British Columbia
One Response to “RESP changes?”
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March 30, 2010 at 9:16 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:
No, RESP’s are a non-exempt asset, which means that if a bankruptcy is filed the RESP’s vest in the trustee and the proceeds from these investments are distributed to the benefit of the creditors.
For reference, one of the recommendations of my professional association (Canadian Association of Insolvency and Restructuring Professionals) was to make the RESP’s exempt, just like RRSP’s, but unfortunately it is not a recommendation that was adopted.