What You Need to Know

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 ongoing pressure.

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.

Considerations for Homeowners

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.