Is Voluntary Liquidation Right for You?
When you're under financial pressure, voluntary insolvency may be a potential route—but knowing the benefits and risks is vital.
End of Harassment
Voluntary liquidation can help pause interest accumulation, offering significant emotional and mental relief.
Structured Resolution
Instead of chaotic repayment, voluntary insolvency gives you a structured, legal framework to settle your obligations cleanly.
Third-Party Oversight
One key risk is handing over financial control to trustees during voluntary sequestration, which may limit your influence over asset distribution and decisions.
Effect on Employment and Business
Voluntary insolvency may affect professional roles, especially in finance or directorship positions, and might restrict business operations.
It's Not the Only Option
Debt review, consolidation, or informal settlements may also help, and should be considered before finalizing voluntary insolvency.