UK Insolvency Act 1986

The UK Insolvency Act 1986 provides the legal framework for dealing with companies and individuals who are unable to pay their debts. It outlines procedures for bankruptcy and corporate insolvency, allowing for the fair treatment of creditors. The Act facilitates different outcomes, such as liquidation (selling off assets to pay debts) or restructuring (making arrangements to pay off debts over time). It also establishes guidelines for insolvency practitioners, who manage these processes, and sets out the rights of debtors and creditors, aiming to provide a balance between recovery for creditors and a fresh start for debtors.