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How will my bankruptcy or consumer proposal affect my children’s bank accounts?
January 6th, 2014
If you’re facing either bankruptcy or a consumer proposal, you may be concerned about what will happen to savings set aside for your children either by you or someone else.
In the case of a proposal, the answer will most likely be ‘nothing’. As with most assets in a proposal, you you’ll still need to advise your trustee about them, but any accounts in your children’s names will not be touched.
In a bankruptcy situation, however, what happens to your children’s savings accounts will depend on exactly how those accounts were set up in the first place.
- If a child’s account is set up in the name of the child and denoted as a trust account, then it won’t be part of the bankruptcy and will remain in place for your child.
- If the account is in your name or held jointly by you and your child, the funds may be considered an asset and may be seized by the trustee.
If you’d like to know more about how bankruptcy and/or a consumer proposal might affect your assets, call today for your free, no obligation consultation: in Ottawa call 613-237-5555; out of town, call toll-free 1-800-517-9926 or book online now.