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.
Debt Cancellation
Voluntary insolvency 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.
A New Start with Patience
Recovery post-voluntary liquidation takes time, and credit rebuilding typically spans five years or more. Strategic budgeting is essential.
Impacts on Property
Under voluntary insolvency, you may be forced to sell real estate, although some exclusions apply with legal help and restructuring.
Seek Expert Advice
Always consult a financial adviser or insolvency attorney before committing to voluntary insolvency to ensure it aligns with your goals.