Question: My wife and I have RESP’s for our kids and they are with a local Calgary credit union. We have been told RESP plans with credit unions are member accounts which are protected. Please advise.
Answer: In Alberta exempt assets are set out in the Civil Enforcement Act. There are no special exemptions for credit unions nor any other financial institutions in Alberta. RESP’s are not protected and may be seized by judgement creditors in settlement of any debts you may owe.
Question: I lost my job 8 months back and have been surviving on EI. I have been using my credit cards to help make ends meet. I have used them to buy food, clothes and my utilities. I’m receiving collection calls now and one of the collection agents said I can’t go bankrupt because I have used my cards to buy neccessities. Is that true?
Answer: It is not true. More than a decade ago the Bankruptcy and Insolvency Act or Bankruptcy Act as it was previously called was amended. There used to be a provision in the Bankruptcy Act that “necessaries of life” would survive a bankruptcy. That provision was repealed and it no longer applies. Credit card debts are forgiveable in a bankruptcy even if they relate to food, clothing or other living expenses.
