Superannuation and bankruptcy

Money in your superannuation fund is safe and cannot be accessed by your bankrupt estate, provided it has been saved legitimately.

Any super contributions made by your employer during your bankruptcy are also protected.

Money that is legally drawn from your super fund after your bankruptcy starts is protected, and the same applies to any property you buy with that money.

However, if you draw money from super before you declare bankruptcy, that money loses the protection of the fund and will be available to your bankrupt estate.

It’s also important to know that you cannot be a trustee of your Self-Managed Super Fund (SMSF) during your bankruptcy.

Alan Nicholls’ no obligation help desk

Nicholls & Co provide a free, no obligation ‘help desk’ for people considering bankruptcy – we discuss and explain bankruptcy and answer questions for anyone who is considering bankruptcy. The Nicholls & Co help desk can be accessed by phone (1300 060 122) or helpdesk@nichollsco.com.au . Alan Nicholls, Registered Trustee in Bankruptcy is also available to answer your questions to enable you to decide if bankruptcy is right for you.