In spiritual world souls rest in spiritual bodies, but to quit the body is easy thing. If to annihilate soul in physical body is difficult, devastation of soul in spiritual world can be facile.
If a soul violates justice God punishes a man and destroys him. He annihilates such a man and sends him to the bottom of spiritual world, where soul sleeps and waits for further reincarnations. Some of them are sent to the fiery lake, some to hard lives to elaborate, some to hungry neglected dogs.
To annihilate soul to the utmost is almost impossible. Only allthehighest God can do this. Our soul is like an onion with many layers. And the level of main God where souls rest is not possible for other gods to watch and edit.
God annihilates soul just by word. And soul falls. God is most kind and never wipes off the map abandoned souls, he always gives a chance to start all over.
If God finds soul which is in material world and does sins, he can send a soul to different level where satan reigns. Satan is an animal and always tortures, he can substitute reality which person sees, send delusions and disassemble spiritual bodies of a person.