Understanding the Benefits and Risks of Voluntary Insolvency

Voluntary insolvency is a major decision that can help you regain control—but it’s important to weigh both the advantages and the risks.

Financial Relief

One major benefit of voluntary insolvency is stopping interest and creditor harassment. If handled correctly, it may offer a clear path to financial recovery.

Shield from Creditors

Entering into voluntary insolvency can provide legal protections that prevent lawsuits, giving you time to reorganize your next steps.

Potential Property Loss

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.

Long-Term Credit Implications

Voluntary insolvency will affect your financial standing for several years, making it harder to get housing in the future.

Get Legal and Financial Advice

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