Bankruptcy – can you keep your KiwiSaver?

The courts will soon decide wether creditors have a right to the contents of KiwiSaver accounts when a person goes bankrupt.

The Government’s Insolvency & Trustee Service (ITS) has been successful in persuading trustees of many KiwiSaver schemes, to release the personal and employer contributions from the KiwiSaver accounts of bankrupts to pay their creditors.

Since KiwiSaver began, the Official Assignee (part of the ITS) has clawed $440,000 out of KiwiSaver accounts in the cases of 165 bankruptcies. But that has been largely a result of bankrupts aged 65 or over.

Most trustees do not believe that the KiwiSaver Act 2006 empowers them to release KiwiSaver funds to pay creditors of bankrupts, when the Official Assignee applies under the scheme’s hardship provisions.

Read the full story.

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About Renee

I'm 26, currently living in Invercargill with my partner. I have a good job as a Communications Officer in the public sector but my bills still exceed my income. The way I have always dealt with my problems is to talk about them. My debt has been a problem for so long, yet I kept it private. I don't know why I didn't do this sooner!
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2 Responses to Bankruptcy – can you keep your KiwiSaver?

  1. Sarah says:

    Renee, I have missed your blogs! You were great motivation to take better care of my own spending habits. Now that you have paid off al that debt life must feel so much easier. I am keen to hear how you are getting on with your emergency fund, and saving for your goals. Plus hear how you are adapting to now having more money – are you letting yourself have more treats? Or are you still super strict on yourself?

    • Renee says:

      Thanks Sarah! I had thought of finishing up with my blog now I’m out of debt but I actually miss writing blog posts so I think I will start back up once I get a bit more organised! I’m definitely not being as strict with my spending, I have splurged on a couple of things that I had wanted for ages but there is also a lot of saving going on. I’ll update everyone with a post shortly!

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