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IVAs and bankruptcies in Northern Ireland

The number of people entering an IVA or bankruptcy in Northern Ireland actually dropped in the third quarter of the year, official statistics from The Insolvency Service have revealed.

In contrast to the figures in England and Wales, the total number of insolvencies in Northern Ireland fell to its lowest level in six quarters, with 381 people declared insolvent: 200 declared bankrupt and 181 entering an IVA.

Both figures represented a significant drop on the previous quarter: in Q2, there were 558 insolvencies, of which 353 were bankruptcies and 205 were IVAs.

"It`s worth noting that people in Northern Ireland who are facing unmanageable debt do not have the option of entering a DRO (Debt Relief Order) - a form of insolvency which is only available to people who live in England or Wales," said a spokesperson for the IVA Advisory Centre.

"The Insolvency Service website specifically points out that while some of the people entering DROs in England and Wales would otherwise have been declared bankrupt, others possibly `could not have afforded the fee to enter into bankruptcy and … may have otherwise been in an informal debt management process, or been unable to access any form of debt resolution`.

"In other words, although insolvencies in England and Wales reached an all-time high in the third quarter of the year, the figure would, in all probability, have been lower if DROs had not been introduced.

"Equally, it`s fair to assume that the Q3 insolvency figures in Northern Ireland may well have been higher if DROs had been available."

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The IVA Advisory Centre are a licensed Insolvency Practice, offering free debt advice as well as IVAs and a comprehensive range of other debt solutions. If you are in debt and would like to explore your options, contact one of our advisers today.