The Insolvency Act 1986

The Insolvency Act 1986 is a key law in the UK that outlines how businesses and individuals can deal with bankruptcy and insolvency. It provides a framework for liquidating assets, reorganizing debts, and protecting creditors' rights. The Act allows for different procedures, like bankruptcy, voluntary arrangements, and company insolvency processes. Its main aim is to handle financial failures fairly, ensuring that debts are managed appropriately while giving a fresh start to those affected. Overall, it balances the interests of debtors and creditors in the insolvency process.