Scottish Insolvency Act 1986

The Scottish Insolvency Act 1986 provides the legal framework for handling situations where individuals or businesses cannot pay their debts in Scotland. It outlines procedures for declaring insolvency, including bankruptcy for individuals and various types of administration for businesses. The Act aims to protect creditors while giving debtors a chance to reorganize their finances or settle their debts. It also sets rules for the fair distribution of assets and ensures that insolvency practitioners manage the process transparently and efficiently, balancing the interests of all parties involved.