While the insolvency framework in the UK is mostly unvarying across England, Scotland, Wales and Northern Ireland, there are subtle differences across the corporate and personal insolvency landscape in Northern Ireland for businesses and individuals.
Dealing with personal or corporate insolvency in Northern Ireland
Corporate insolvency legislation in the UK is governed by the Insolvency Act 1986, for which the equivalent in Northern Ireland is the Insolvency (Northern Ireland) Order 1989.
The Insolvency Order is consistent with the legal provisions set out in the Insolvency Act 1986 to guide corporate and insolvency matters.
Debt enforcement in Northern Ireland
Debt enforcement and the role of a bailiff differs in Northern Ireland, compared to the rest of the UK. There are no bailiffs in Northern Ireland and debt enforcement is centralised under the Enforcement of Judgments Office (EJO), a department of the Northern Ireland Courts and Tribunals Service.
If a debt is long overdue and a creditor wishes to take legal action, they must progress this through the Enforcement of Judgments Office.
Alternatively, a creditor may appoint a private debt collection agency. While a private debt collector can apply pressure on a debtor, they do not have the power to force entry into a property or repossess.
What’s the role of the EJO?
The EJO, which is a court, is responsible for enforcing money, goods, and property judgments. EJO enforcement officers must act fairly and not in a way to cause unreasonable hardship.
Here are some of the methods the EJO may use to enforce a judgment:
• Attachment of earnings order
• Instalment order
• Order charging land
• Seizure order
• Order appointing receiver
• Garnishee order
When debt enforcement action in Northern Ireland is referred to, this will be implemented by EJO enforcement officers, rather than bailiffs.
Common debts in Northern Ireland
Individuals in personal debt in Northern Ireland are exposed to the same debt risks as individuals across England, Scotland and Wales. However, it’s worth noting that residents in Northern Ireland do not pay council tax, the NI equivalent is domestic rates which is based on the valuation of the property.
If individuals cannot afford to pay their rates bill, the Land & Property Services (LPS) will seek legal action. This can incur additional costs and put individuals at risk of bankruptcy, repossession or the debt being transferred to a debt collection agency.
Northern Ireland debt help
Debt help is widely available to businesses and individuals across the UK through designated professionals, such as licensed insolvency practitioners and qualified debt advisers. They are well-positioned to advise on a wide range of corporate insolvency and personal insolvency solutions available in Northern Ireland. If creditor action is fast approaching, it’s vital to seek professional advice in the first instance to prevent financial health from further deteriorating.
Support from a debt specialist can bridge communication between debtors and creditors to help facilitate repayment negotiations. For more information on Northern Ireland debt help, get in touch with Lawrence O’Hara, Insolvency Director at Northern Ireland Debt Solutions in Belfast.
