The Realities of Voluntary Insolvency

Voluntary sequestration can provide much-needed relief, but it's not a decision to take lightly. Let's examine both the pros and cons.

Debt Cancellation

Voluntary liquidation can cancel a significant portion of debt, allowing individuals to rebuild financially without ongoing pressure.

Loss of Privacy

All forms of voluntary insolvency become public record, meaning others—including potential employers—may access your financial history.

A New Start with Patience

Recovery post-voluntary liquidation takes time, and credit rebuilding typically spans five years or more. Strategic budgeting is essential.

Considerations for Homeowners

Under voluntary sequestration, you may be forced to sell real estate, although some exclusions apply with legal help and restructuring.

Know the Road Ahead

Always consult a financial adviser or insolvency attorney before committing to voluntary insolvency to ensure it aligns with your goals.