Using Superannuation funds to pay off property loss??

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?

 

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)

 

Department of human services

Early release of superannuation - Australian Government Department of Human Services

 

Thanks all.

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

 

Get legal advice.

 

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

 

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?

 

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

 

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

 

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.

 

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.