Get the knowledge you need to make well-informed financial decisions at our upcoming events. Register now.

Superannuation2018-07-13T13:40:37+00:00

Article Blogs

Superannuation

Is my superannuation safe if I become bankrupt?

Is my Superannuation safe if I become Bankrupt? Some individuals that realise they are heading towards the bankruptcy route will try to funnel their assets in superannuation for an "assumed" protection of these monies and assets. This is simply not the case. The truth about bankruptcy: Although filing for bankruptcy is meant to give people a fresh start by relieving burdensome debt, you must consider pros and cons if you are thinking about this option. According to the Bankruptcy Act, superannuation is usually a protected asset and falls under the category of ‘non-divisible' property. Non-divisible property is property which a trustee cannot take from a bankrupt. In relation to super, it is the interest that a bankrupt has in a regulated superannuation fund or a payment from such a fund received on or after the date of bankruptcy that may be at risk. The Bankruptcy Act was modified with effect from 28 July 2006 to prevent debtors from funneling their assets into their superannuation to protect their monies from creditors. When a trustee is looking at contributions made after this date and prior to bankruptcy they will consider the following; Were the contributions made to the superannuation fund out of character? Would the assets have formed part of the bankrupt's estate and otherwise been available to creditors Is the superannuation fund complying and regulated? If the answer is ‘no’ to the first two questions and ‘yes’ to the last, then it is very likely that the superannuation funds

Testimonials

“There are things I must do in the next five years to make that happen, but I know what they are and am working towards them. This is a much happier prospect than what I believed would be my lot when I reached retirement age.”

Scharlaine

“I will remain with them as they have been great to me for many many years.”

Sharn

“I’ve been a customer for several decades(scary how time flies). The service has always been impeccable, consistent, friendly.”

Colleen

“Very happy with the ease of experience. And extremely happy with my return…much more than I anticipated.”

Angela

“The process suits me perfectly, the details and everything you need from me is provided. You then review and I come in to sign where appropriate. In a busy schedule, it suits me perfectly.”

Richard

“Our business with Modoras is always very professional and friendly making it a pleasure to attend.”

Peter & Merle

“I have recommended Modoras to friends and family. My sister in law is now a client.”

Glenn

“Professional service with the personal care factor.”

Kathy

“We are very happy with the service that Modoras have provided and find all staff very friendly and helpful.”

Tom

“Super friendly staff . Would recommend and have recommended.”

Danielle

“We really enjoy the hospitality every time we visit the office, to meet and talk directly with the ‘Modoras family’ has a huge impact in entrusting our financial future.”

Robert

“We have built an excellent business rapport with our Accountant over many, many years. He has managed both personal and business tax and accounting matters for us. It is a pleasure to attend the lovely office in Mt Gravatt. The Reception staff are friendly and efficient. AND they make a great coffee!”

Rosemary

Financial Planning and Credit services are offered through Modoras Pty Ltd ABN 86 068 034 908. Australian Financial Services and Credit Licence No. 233209.
Accounting services are offered through Modoras Accounting (QLD) Pty Ltd ABN 81 601 145 215, Modoras Accounting (VIC) Pty Ltd ACN 145 368 850 and Modoras Accounting (SYD) Pty Ltd ABN 18 622 475 521

Copyright Modoras 2018. All Rights Reserved.