Case leaves bankruptcy questions unanswered
The High Court recently ruled that bankrupts’ existing savings in a KiwiSaver scheme are available to be distributed by the Official Assignee to creditors, but only after the KiwiSaver member qualifies to withdraw the money – usually at age 65.
And in doing so, it created almost as many questions as it answered.
The case went to court after the Official Assignee requested the trustee of a KiwiSaver scheme release the funds of two bankrupts under the significant hardship provisions.
One of the men had debts of $26,254 and a KiwiSaver balance of $11,860.46. The other had debts of $9,583 and a balance of $10,805.98.
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