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.
End of Harassment
Voluntary insolvency can help prevent lawsuits, offering significant emotional and mental relief.
Structured Resolution
Instead of chaotic repayment, voluntary insolvency gives you a structured, legal framework to settle your obligations transparently.
Surrendering Management
One key risk is handing over financial control to trustees during voluntary liquidation, which may limit your influence over asset distribution and decisions.
Career and Business Consequences
Voluntary insolvency may affect professional roles, especially in finance or directorship positions, and might restrict business operations.
Consider All Paths
Debt review, consolidation, or negotiated repayment plans may also help, and should be considered before finalizing voluntary liquidation.