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Leon
Leon, Solicitor
Category: Australia Law
Satisfied Customers: 43522
Experience:  BEc Dip Ed, Dip Law (SAB) MTax (UNSW)
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I may have to go bankrupt. What happens to my superannuation

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I may have to go bankrupt. What happens to my superannuation in this case? It is in a structured fund.
Good Afternoon,

Thank you for your question. To Introduce myself I am a sydney based Solicitor and will do my best to provide you with relevant information to assist you.

When you say it is a structured fund what exactly do you mean?

generally the trustee in bankruptcy cannot touch your superannuation.

In order for them to be able to access your superannuation, you must be beneficially entitled to it at the time you are bankrupt. This means you have a right to access the money.

Because superannuation funds are not able to be accessed until the age of 60 and over, the trustee in bankruptcy cannot touch them either.

Use the majority of your fund even though it is structured preserved until you reach retirement age?

Customer: replied 3 years ago.

Yes, I am only in my early forties

Good Evening

In that case the Trustee in Bankruptcy cannot touch your Superannuation.

Here is some information

https://www.itsa.gov.au/resources/financial-counsellors/complex-queries/superannuation

If you can get access to your super then the trustee can take take it from you.

I hope this is of assistance.
Customer: replied 3 years ago.

I also noted on the bankruptcy application that they want the income of my de facto partner specified. Why is this?

Good Evening

This is used to work out your ability to live and if they will seek to take some of your income.

They need to know you full financial position and this includes the assistance you receive from third parties.

I hope this is of assistance.
Customer: replied 3 years ago.

thankyou

Good Evening

I happy to have been of assistance. If I have missed anything, or you have any further questions please let me know before leaving any feedback.

If I have assisted please do not forget to leave me with positive feedback.


Customer: replied 3 years ago.

there is just one more question. As I have far more creditors than resources available. All are unsecured. How is the Trustee likely to pay them? Is there any system? The only asset of value I have coming in is a settlement payment from my ex Husband in six months of $58,000. IF he pays will this be regarded as income for me or an asset to divide amongst creditors? My only other income is centrelink and minimal CSA.

Good Evening

The trustee will see what assets it can collect. If it cannot collect assets over the 3 years then the creditors will be told they get nothing.

If during the bankruptcy you get tax refunds they will be taken by the trustee, winnigs from lotto inheritances etc.

If you get nothing then they get nothing.

Your income is what you receive.

I hope this makes sense.
Customer: replied 3 years ago.

will the $58,000 be considered as income or an asset?

Good Evening

The $58,000.00 is an asset and can be claimed by the Trustee.




Customer: replied 3 years ago.

thankyou, please send through your ratings

Good Evening

I hope this is of assistance. If I have missed anything, or you have any further questions please let me know before leaving any feedback.

If I have assisted please do not forget to leave me with positive feedback.

Leon and other Australia Law Specialists are ready to help you