RESP – divorced bankrupt

April 23rd, 2012 by Questions

How much will an RESP of a divorced bankrupt be liquidated? Will the whole thing be affected or just 50% as the bankrupt’s share of pay? Will there still be money in the RESP after the fact so the child can still go to secondary school, or the parent/s can still continue to contribute towards the account? The child does not live with the bankrupt parent and but continues to make contributions towards this RESP.

Posted from: Alberta

Questions

One Response to “RESP – divorced bankrupt”


April 23, 2012 at 9:05 am, Barton Goth - Goth & Company Inc. -Trustee in Bankruptcy said:

This will really depend on who’s name is listed on the RESP. If it is only listed in the bankrupt parent’s name then 100% would be lost, but if it is held jointly then only 50% is lost as part of the 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.)