What happens to my child’s RESP if I file a bankruptcy or consumer proposal in Sarnia?

by Joel Sandwith on October 3, 2013

Hello all, I’ve been getting this question a lot this past week or two so I thought I’d share the answer on the blog.

As I’m guessing you are aware, an RESP (Registered Education Savings Plan) is a financial tool you can use to help save for your child’s education.  You deposit money, after tax, in the RESP, the government adds 20% (nice bonus!) and when the child goes to college or university they get the money to help with the costs.

Many of my clients have these – often they were set up when times were good, and now they are coming to see me because of job loss, etc.

Most people believe that the RESP is protected, because ‘it’s for the kids’.  They are often surprised to find out that if they file bankruptcy, and they own an RESP for their child, the trustee may have to collapse the RESP plan and take the money out to pay their creditors!

I should explain that this is not exactly how it always happens, often I am able to help my clients keep the RESP by making a deal with them to ‘pay’ to keep it.

But, having said that, here is a very important piece of information:  if you file a Consumer Proposal instead of bankruptcy we can arrange it so that you will keep every dime of that RESP for your kids!  This is in many cases the number one reason to look at a proposal – so that you can maintain control of your assets while dealing with your debts.

Got debt?  Give me a call, 866-747-0660, 310-PLAN (7526 no area code required), or locally here in Sarnia at 519-344-1058.  It’s free to meet with me, no up front fees.

Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter

{ 7 comments… read them below or add one }

The Vampire Diaries Season 5 Episode 22 Online May 14, 2014 at 7:43 am

Remarkable! Its genuinely remarkable article, I have got
much clear idea regarding from this piece
of writing.

Reply

https://www.ted.com/ August 6, 2014 at 5:11 pm

It is a great way to keep your kid occupied and engrossed in an activity.
Think about the personality of the person who you are giving the birthday gift to, and you’ll come up with a fantastic birthday gift idea.
This way they add the wet ingredients and enjoy the
cookies.

Reply

สาขาวิชาศิลปะการแสดง August 23, 2014 at 2:45 am

Hey I know this is off topic but I was wondering if you knew of any widgets I could add to my blog that
automatically tweet my newest twitter updates. I’ve been looking for a plug-in like this for quite
some time and was hoping maybe you would have some experience with
something like this. Please let me know if you run into anything.
I truly enjoy reading your blog and I look forward to your new updates.

Reply

dog's healthy teeth August 25, 2014 at 11:01 pm

We are a gaggle of volunteers and opening a brand new scheme in our community.
Your site offered us with helpful info to work on. You have done a formidable activity and our entire group might be
thankful to you.

Reply

cruise parking August 27, 2014 at 3:12 am

This design is wicked! You definitely know how to keep a
reader amused. Between your wit and your videos, I was almost moved to start
my own blog (well, almost…HaHa!) Great job.
I really enjoyed what you had to say, and more than that, how you presented it.
Too cool!

Reply

black and decker bread maker amazon October 24, 2014 at 12:10 pm

You can bake a regular 2 pound loaf with the Zojirushi 2lb Home Bakery Supreme Breadmaker.
Whatever the reason, if your pizza crust suddenly is
not the same after you move, I’d do some trial
and error experimenting with adjustments to the recipe to see if
you can get better results. Exactly how many features really does the maker have got.

Reply

krups Coffee maker and espresso machine January 6, 2015 at 12:41 am

Safety must be around the forefront of your respective mind all the
time. The most widely used of single serve coffee makers is the
Tassimo Coffee Maker as a consequence of it’s amazingly easy and ingenious technique of brewing
coffee with the information are called T DISCs, which have precise measurements of coffee in small
round packets that have little barcodes on the label that this machine reads when you insert it to automatically program just how much water is required,
the complete brewing time and brew temperature to make perfect and consistent coffee whenever.
Millions of individuals know the Cuisinart brand, and they also
really do trust it because that company has earned that
trust.

Reply

Leave a Comment

Previous post:

Next post: