Insolvency Act (1986, United Kingdom)

The Insolvency Act 1986 is UK law that provides legal procedures for dealing with individuals and companies unable to pay their debts. It outlines options such as bankruptcy, liquidation, and voluntary arrangements, aiming to fairly distribute assets among creditors. The act also establishes rules to protect creditors’ interests, governs the roles of insolvency practitioners, and sets procedures for resolving insolvency cases efficiently. Its purpose is to balance debtor relief with creditor recovery, maintaining order and transparency in insolvency processes.