Understanding the Pros and Drawbacks of Voluntary Liquidation

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.

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

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

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

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

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