The Insolvency (Amendment) Rules (Northern Ireland) 2024
The Insolvency (Amendment) Rules (Northern Ireland) 2024 (the “Rules”) were made on December 23, 2024, and came into force on that date. The Rules amend the Insolvency (Northern Ireland) Order 1989 (the “Order”) in a number of ways.
Key changes
The key changes introduced by the Rules include:
- Increasing the monetary threshold for compulsory liquidation and administration
The monetary threshold for compulsory liquidation and administration has been increased from £750 to £1,000. This means that a creditor will only be able to petition for the compulsory liquidation or administration of a company if the debt owed to the creditor is at least £1,000.
- Introducing a new procedure for the winding up of small companies
A new procedure for the winding up of small companies has been introduced. Small companies are defined as companies that have a turnover of less than £100,000 and fewer than 50 employees. The new procedure is designed to be more streamlined and less costly than the traditional winding up procedure.
- Making it easier for insolvent individuals to obtain a debt relief order
The Rules make it easier for insolvent individuals to obtain a debt relief order (DRO). A DRO is a type of insolvency procedure that allows an individual to write off their debts after a period of time. The Rules increase the maximum amount of debt that an individual can have in order to be eligible for a DRO from £20,000 to £30,000.
Conclusion
The Insolvency (Amendment) Rules (Northern Ireland) 2024 make a number of significant changes to the insolvency regime in Northern Ireland. These changes are designed to make the insolvency process more streamlined and less costly, and to provide greater assistance to insolvent individuals.
The Insolvency (Amendment) Rules (Northern Ireland) 2024
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