Insolvency Act 1986 (UK)

The Insolvency Act 1986 is UK legislation that outlines the legal processes for dealing with individuals and businesses that cannot pay their debts. It provides mechanisms for bankruptcy and various forms of corporate insolvency, such as administration and liquidation. The Act aims to balance the interests of creditors, who are owed money, with those of debtors seeking relief from their financial burdens. It establishes how debts are prioritized, how assets can be managed or sold, and outlines the roles of insolvency practitioners who help navigate the process. Overall, it aims to ensure fairness and order in financial distress situations.