United Kingdom Insolvency Act 1986

The United Kingdom Insolvency Act 1986 is legislation that governs how businesses and individuals handle insolvency, which occurs when they can't pay their debts. It sets out procedures for companies to reorganize or liquidate, protecting creditors’ interests while providing options to resolve financial difficulties. The Act establishes roles for insolvency practitioners, such as administrators and liquidators, and details processes for formal insolvency procedures like administration or bankruptcy. Its goal is to ensure fair treatment of all parties involved, facilitate orderly resolution of insolvent entities, and maximize the return to creditors.