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.
Ending the Debt Cycle
Voluntary liquidation can cancel a significant portion of debt, allowing individuals to rebuild financially without creditor threats.
Downside: Public Record
All forms of voluntary sequestration become public record, meaning others—including potential employers—may access your financial history.
A New Start with Patience
Recovery post-voluntary insolvency 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.