UK insolvency regulations

UK insolvency regulations are designed to manage situations where a company or individual cannot pay their debts. They provide legal processes—such as administration, liquidation, and bankruptcy—to either rescue the entity, fairly distribute assets among creditors, or wind down operations. These rules aim to balance the interests of debtors, creditors, and other stakeholders, ensuring transparency, fairness, and orderly resolution. Regulatory bodies, like the Insolvency Service, oversee these procedures, enforce laws, and promote responsible financial management within the UK’s insolvency framework.