Should You Consider Voluntary Insolvency?

When you're under financial pressure, voluntary insolvency may be a potential route—but knowing the benefits and risks is vital.

Stress Reduction

Voluntary insolvency can help stop collection calls, offering significant emotional and mental relief.

Organized Debt Strategy

Instead of chaotic repayment, voluntary insolvency gives you a structured, legal framework to settle your obligations transparently.

Loss of Control

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 sequestration 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.