Personal Insolvency

Personal Insolvency including IVAs and Bankruptcy in Belfast

There are two types of insolvency procedure available to the individual depending on their circumstances:-

Individual Voluntary Arrangement (IVA)

An IVA is a less formal procedure open to insolvent individuals. The procedure is extremely flexible, its exact nature varying from case to case depending on the terms of the proposal. By entering into an IVA the debtor may be able to order his affairs in a way which benefits his creditors but would not be possible under bankruptcy: for example, by an orderly disposition of assets, introduction of third party funds, contributions from future earnings, or debt rescheduling. The IVA’s benefits include its flexibility, its lack of publicity compared with bankruptcy, that it may be cheaper to administer for the creditors than a bankruptcy.


In a bankruptcy the court is officially responsible for making a bankruptcy order against an individual. A bankruptcy order may be made either on the petition of a creditor or the debtor in either case on the grounds of insolvency, or by the supervisor of a failed Individual Voluntary Arrangement (IVA). Once an order is granted it must be advertised in the Belfast Gazette and the bankrupt’s assets fall under the control of a Trustee. The Trustee is then responsible for realising the bankrupt’s assets and distributing the proceeds among the creditors.