Can I Acquire An Rrsp Or Resp During A Bankruptcy

While you are in bankruptcy, any property you acquire is called “after-acquired property.”   After-acquired property is yours to keep unless the Trustee steps in.  On day-to-day savings, including RRSPs and RESPs, the Trustee is not going to step in unless you are not complying with your duties in the bankruptcy.  For example, if you have surplus income payment requirements and are not paying them, but are purchasing an RESP, the Trustee could seek a Court Order to collapse the RESP.  You can’t save up new assets if you’re not complying with your bankruptcy obligations.   But if you are meeting your bankruptcy obligations and are then able to purchase an RRSP or RESP, that’s great saving on your part.  The Trustee would have no reason to take these funds.  Great budgeting on your part.   Another type of after-acquired property is an inheritance or a lottery winning.  If you come into those while you are in bankruptcy, you have to disclose them to the Trustee.  And likely turn it over, atleast to the extent of the amount of your debt.   These rules would apply no matter if you filed for bankruptcy in Alberta or another province in Canada. If you have specifics that you would like to review, do not hesitate to contact us.   Donna Carson, CGA, CIRP, Trustee Calgary and Central Alberta regions 1.877.500.0792        donna.carson@mnp.ca