How does an IVA work in Northern Ireland?

Can you get an IVA in Northern Ireland?

Yes, people in Northern Ireland can get an individual voluntary arrangement under Part VIII of the Insolvency (Northern Ireland) Order 1989 (opens in a new tab), set up by an insolvency practitioner who shares your regular payments among your creditors as the IVA agrees (nidirect (opens in a new tab)).

The IVA most of our pages describe is the England and Wales version, made under Part VIII of the Insolvency Act 1986 (section 253 (opens in a new tab)). Northern Ireland has its own Order, its own rules and its own public register. Our guide to how an IVA works in England and Wales covers that version in full.

NTF Financial Solutions works in England and Wales. We do not set up IVAs in Northern Ireland, so this page explains the Northern Ireland rules and points you to free, independent help there. If you live in England or Wales, you can ask us about an IVA or bankruptcy.

How is a Northern Ireland IVA different?

An IVA in Northern Ireland is made under Part VIII of the Insolvency (Northern Ireland) Order 1989, needs creditors holding more than 75% of your debts to accept it at a meeting of creditors, and nidirect gives £15,000 as a guide level of unsecured debt (the Order (opens in a new tab); nidirect (opens in a new tab)).

The core deal is the same as in England and Wales: affordable payments that an insolvency practitioner shares among your creditors. The vote works differently, though. Northern Ireland asks for more than 75%, where England and Wales asks for three-quarters or more in value of the creditors who respond.

The £15,000 depends on your creditors, and nidirect says there is no set minimum or maximum payment beyond what your creditors will accept. Your practitioner arranges the meeting of your creditors, and once the IVA is accepted it applies to all of them.

Once approved, your IVA goes on the Individual Voluntary Arrangement Register (opens in a new tab), which the Department for the Economy shares with credit reference agencies. nidirect warns that an IVA makes it harder to open new bank accounts, get loans or buy on credit, and that if you do not keep up your payments your creditors can cancel it and take further action, including making you bankrupt.

Who can set up an IVA in Northern Ireland?

Only an insolvency practitioner can set up an IVA in Northern Ireland, and article 349 of the Insolvency (Northern Ireland) Order 1989 (opens in a new tab) says that practitioner must be an individual who is authorised to act.

To find one, nidirect runs an Insolvency Practitioner Directory (opens in a new tab) that gives each practitioner’s contact details and the body that licenses them. It lists only practitioners who have agreed to be included, so a missing name does not prove someone is unlicensed: ask the practitioner which body licenses them and check with that body.

nidirect also points out that practitioners charge for advice on specific debt problems, such as whether bankruptcy is right for you, and that the same advice is available free from your local Advice NI office or National Debtline. Speak to a free adviser first, as nidirect’s own five steps to an IVA suggest.

Where can I get free debt advice in Northern Ireland?

Free debt advice in Northern Ireland is available from Advice NI (opens in a new tab) and StepChange Debt Charity, the two organisations nidirect names for free and independent advice face to face or over the phone (nidirect (opens in a new tab)).

An adviser can compare an IVA with the other routes Northern Ireland offers, including informal arrangements, debt management plans, administration orders for debts of £5,000 or less, debt relief orders and bankruptcy (nidirect (opens in a new tab)), and can talk to your creditors for you.

These organisations are independent of NTF Financial Solutions. If you live in England or Wales instead, GOV.UK lists free debt advice services there, and the panel on this page links to that list.