Northern Ireland's Bankruptcy Problem

The North’s Department of Enterprise is not often known for its perfect timing – so perhaps it is just a “lucky” coincidence that it is looking for a new director of its insolvency service at the same time as latest figures show a rapid rise in personal and corporate insolvencies in Northern Ireland. According to UK official insolvency statistics for the second quarter of 2013, 894 people were declared insolvent in Northern Ireland. Most took the form or bankruptcy (374) while 167 people opted for debt relief orders – which enable people whose debts are not more than £15,000 to write them off without resorting to bankruptcy. A further 353 people chose to go down the IVA (individual voluntary arrangement) route with their creditors to pay all or part of their debts and avoid bankruptcy. Over the last year, the number of people declared insolvent one way or another in the North has risen to a record high of 3,330.