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Using Superannuation funds to pay off property loss??

Discussion in 'General Property Chat' started by Ems, 15th Jul, 2016.

  1. Ems

    Ems Active Member

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    I understand the rules and regulations in regards to superannuation funds and the reason it is there is to help in retirement age. I completely get that you can't just use the funds for personal use but if using the funds stopped you from going broke pretty much would that be possible??

    I've posted our situation earlier so just wondering if anyone knew whether it was possible to do this?? I'm still thinking no but trying to think of ALL our options. Selling the PPOR and the house we have in super would enable us to pay off the Gladstone house that is currently costing us dearly.

    Anyone have any thoughts?
     
  2. wylie

    wylie Moderator Staff Member

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    Why not go directly to the people who would approve or decline this request?

    That way you get an answer quickly and it is coming from the people who should know.

    I've heard it is very hard to get a "yes" to releasing superannuation, especially if you are young and have other ways to meet the debt, but you lose nothing by asking.
     
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  3. Angel

    Angel Well-Known Member

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    Hi Ems
    I understand that there used to be provision to draw on Super to avoid bankruptcy a very long time ago but that rule may have changed since then. Best to phone your Super Fund and ask them. Have a search on their website and the ATO Superannuation website. (I'm going to work now)
     
  4. Greyghost

    Greyghost Well-Known Member

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  5. Ems

    Ems Active Member

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    Thanks all.

    It is saying to contact your super fund for confirmation. What happens if it a SMSF like ours? ATO I presume??
     
  6. wylie

    wylie Moderator Staff Member

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    I know there is a separate area just for SMSF that your call will be put through to if you call ATO.
     
  7. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    Get legal advice.
     
  8. Marg4000

    Marg4000 Well-Known Member

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    I don't know your personal situation, but if you may be going bankrupt then get advice as I believe that super is exempt from bankruptcy proceedings. It may be the only asset you are left with.
    Marg
     
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  9. sanj

    sanj Well-Known Member

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    i cant help but think this is a terrible idea.

    if your situation is really that dire and there is no light at the end of the tunnel despite best efforts then you should consider declaring bankruptcy. it isnt the end of the world and at least you 2 would be able to breathe again.

    are you both guarantors or borrowers on all mortgages? is there any other debt?
     
  10. Ems

    Ems Active Member

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    I would have thought using the super money would be a better option than declaring bankruptcy? Bankruptcy would be the last option..
     
  11. sanj

    sanj Well-Known Member

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    why would that definitely be better? honest question. what happens if you use your super money, have absolutelyt nothing left and then still fall short? i assume the super amount would be a decent size if its enough to pay for the shortfall.

    of course there are serious downsides of declaring bankruptcy, im in no way denying that and im not even saying that is a good idea. i just think it is an idea worth considering.

    at least you would still have your super instead of eradicating it all. are you both on all loans? you have to consider the mental/emotional strain too, if youre both managing fine atm thats great, if youre not then going down the bankruptcy path can sometimes be quite helpful as it means not continually fighting a potentially unwinnable fight. yes theres stigma attached to it but thats just ego and nonsense, its not like you have done anything fraudulent and are hiding behind it.

    obviously i do not know your siytuation intimately or you 2 personally so im talking more generally here vs specifically


    ultimately though you should try to make a decision soon-ish because each day is putting you in a worse not better position
     
  12. Terry_w

    Terry_w Solicitor, Finance Broker, CTA Business Member

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    The sole purpose of super is to provide for retirement. If people used it to bail them out of financial problems that would mean they have less for retirement.
     
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  13. Air_Bender

    Air_Bender Well-Known Member

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    I know this is completely off-topic and I apologise for hijacking the thread but I just came across this news article and I immediately recognised the man in the picture.

    India 'gold man' battered to death - BBC News

    This may sound ignorant but I always thought that was you in your profile picture @sanj. Turns out I was completely wrong!

    Shame about the poor fella though.
     
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