A bankrupt’s KiwiSaver are off limits to creditors according to a recent Court of Appeal ruling.
This was tested in court recently when an official assignee tried to access two bankrupted KiwiSaver investor’s funds. The official assignee argued that the funds should be available under financial hardship but the Court of Appeal disagreed.
The key message of this ruling is that regular payments into KiwiSaver are protected for the intended purpose and are safe from creditors. This is a very important point as investor’s KiwiSaver balances start to become significant.
KiwiSaver is a really simple process, however, there is some important information that could significantly influence how successful your KiwiSaver is, which we know about and are keen to ensure you know too! Planning prior to life’s events can make a big difference to your experience of life. If you want to discuss the nitty gritty around KiwiSaver, give us a call.
John Barber