Northern Ireland insolvency law receives its biggest overhaul in more than a decade

The Insolvency (Amendment) Act (Northern Ireland) 2026 (the Act) received Royal Assent on 24 June 2026, introducing a wide-ranging package of reforms affecting both corporate and personal insolvency procedures. For insolvency practitioners, the legislation will feel familiar in many respects, bringing Northern Ireland more closely into line with reforms which have operated in England and Wales and Scotland under the Small Business, Enterprise and Employment Act 2015.

The Act amends the Insolvency (Northern Ireland) Order 1989 and the Insolvent Partnerships Order (Northern Ireland) 1995.

Its overarching aim is to modernise insolvency procedures, reduce unnecessary administrative burdens, improve returns to creditors and facilitate greater use of digital communication and decision-making.

When does the Insolvency (Amendment) Act (Northern Ireland) 2026 come into force?

The Act doesn’t come fully into force immediately. 

Part 9 (Protection of Essential Supplies) and Part 13 (General provisions) came into force on the day after Royal Assent. The remaining provisions will come into force on dates to be set out in commencement orders which will also make transitional and saving provisions.

New Rules will be needed to set out the detailed procedures and provisions in relation to the Act.

Protection of essential supplies

The changes that came into force immediately are the wider protections for essential supplies. However, their practical impact may be limited at this stage because they apply to personal insolvency and businesses run by individuals or partnerships. Currently, provisions cover utilities such as gas, water and electricity.

The Act extends these protections to communications services and other important goods and services. These include payment terminals, computer hardware and software, IT support, data storage and processing, and website hosting.

Insolvency-related contract terms will also be prevented from taking effect when an individual or partnership voluntary arrangement is approved. This applies where the contract is for essential goods or services used by the business.

Regulations are expected to follow which will make equivalent provisions in relation to company insolvency processes.

The end of routine physical creditors’ meetings

Creditor decisions will no longer have to be made at physical meetings. Instead, a new framework is introduced based on:

• Qualifying decision procedures
• Creditors’ decision procedures
• Deemed consent processes

Physical meetings will remain possible, but generally only when requested by a minimum threshold of creditors. The threshold is where any of the following thresholds are met:

• 10% in value
• 10% in number
• 10 creditors

The reforms apply across both corporate and personal insolvency regimes and affect liquidations, administrations, Company Voluntary Arrangements, Individual Voluntary Agreements and bankruptcy procedures.

Expansion of deemed consent

The legislation introduces a formal deemed consent procedure for many insolvency decisions.

Under this model, creditors are notified of a proposed decision and the decision is treated as approved unless objections are received from at least 10% in value of relevant creditors. Relevant creditors in this context are those creditors who would be entitled to vote if the decision was to 
be made by a qualifying decision procedure.

Some decisions, particularly those about fees, still need to be determined through a formal decision procedure, rather than deemed consent.

Opted-out creditors

Creditors will be able to elect not to receive specified categories of routine insolvency correspondence. However, they’ll retain the ability to participate in decision procedures and voting processes unless excluded by specific rules.

Notices relating to actual or proposed distributions can’t be withheld from opted-out creditors.

Small claims

For small claims, creditors may be treated as having submitted proof of debt, even if they haven’t formally done so.

Administrators gain new litigation powers

One of the key changes is that administrators will have wider powers.

Administrators will be able to bring claims for both fraudulent trading and wrongful trading. Previously, these claims were mainly available in liquidation.

Assignment of office-holder claims

The Act also permits liquidators and administrators to assign certain causes of action, including:

• Fraudulent trading claims
• Wrongful trading claims
• Preferences
• Transactions at an undervalue
• Extortionate credit transaction claims

This mirrors provisions already operating elsewhere in the UK. It may increase recoveries where an estate lacks the resources to pursue litigation directly. Claims that might previously have remained dormant can potentially be sold to specialist litigation funders or other third parties.

Consent to extension of administrations

The Act also makes other specific changes to administrations, alongside the changes to meetings, decision-making and claims.

Most notably, administrators may obtain creditor consent to extend their term of office by up to 12 months, compared with the previous six-month period.

Changes to liquidation procedures

Both creditors’ voluntary liquidations and compulsory liquidations will see major reforms. Notable changes include:

• Abolition of several statutory meeting requirements.
• Revised processes for creditor nomination of liquidators.Updated provisions governing liquidation committees.
• Replacement of certain final meetings with final account procedures.
• Revised mechanisms governing removal, release and vacation of office of liquidators.

Many of these changes are designed to remove procedural steps that are often costly but add limited value in practice.

Bankruptcy and personal insolvency

Processes for creditor decision-making, trustee appointment, trustee release and creditors’ committees are all updated.

Fast-track voluntary arrangements will also be abolished, bringing Northern Ireland into line with England and Wales. Existing cases can continue where the process had already started.

Insolvent partnerships

Part 12 contains extensive amendments to the Insolvent Partnerships Order (Northern Ireland) 1995.

The changes largely replicate the reforms made elsewhere in the Act. They extend updated creditor decision-making procedures, deemed consent processes, office-holder release rules, and administration and winding-up reforms to insolvent partnerships.

The Act also updates how director disqualification rules apply to partnerships.

What should insolvency practitioners do now?

Although most of the reforms aren’t yet in force, insolvency practitioners acting in Northern Ireland should begin reviewing internal procedures and template documents now. Those already operating under legislation in England and Wales and Scotland will be able to draw heavily, but not exclusively, on procedures and documents used in those jurisdictions.

Special attention should be given to:

• Creditor decision-making processes
• Use of deemed consent
• Communications with opted-out creditors
• Administration and liquidation workflows
• Office-holder litigation strategies
• Technology platforms used for remote participation and electronic communications

Once the commencement orders are published, insolvency practitioners are likely to face one of the most significant procedural transitions in Northern Ireland insolvency practice in recent memory.