Understanding the Benefits and Risks of Voluntary Insolvency

Choosing voluntary insolvency is a life-changing decision that can offer relief—but it’s important to weigh both the advantages and the risks.

Financial Relief

One major benefit of voluntary liquidation is freedom from debt obligations. If handled correctly, it may offer a clear path to fresh financial start.

Shield from Creditors

Entering into voluntary sequestration can provide legal protections that freeze creditor action, offering space to plan your next steps.

Not All Assets Are Safe

While you might gain relief, voluntary sequestration may also involve surrendering assets to pay off debts, and this can include homes depending on the case.

Impact on Credit Record

Voluntary liquidation will damage your credit for several years, making it harder to get housing in the future.

Professional Guidance Matters

Before choosing voluntary sequestration, consult professionals to understand whether this is the right option for your specific financial circumstances.