The Realities of Voluntary Insolvency

Voluntary insolvency can provide a clean slate, but it's not a decision to take lightly. Let's examine both the pros and cons.

Ending the Debt Cycle

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

Loss of Privacy

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

Long-Term Recovery

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

Do You Keep Your Home?

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

Plan Before You Act

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