United Kingdom insolvency law

UK insolvency law governs how individuals and businesses handle situations when they cannot pay their debts. It provides legal processes to either reorganize, restructure, or wind up affairs to fairly distribute assets among creditors. Key procedures include administration, company voluntary arrangements, bankruptcy, and liquidation. These processes aim to balance the interests of debtors, creditors, and other stakeholders, ensuring transparency and order. Insolvency law also offers protections and opportunities for debtors to resolve their financial difficulties, either through restructuring or orderly closure, while safeguarding creditor rights and maintaining economic stability.