Insolvency Act 1986


The Insolvency Act 1986 is an Act of the Parliament of the United Kingdom that provides the legal platform for all matters relating to personal and corporate insolvency in the UK.

History

The Insolvency Act 1986 followed the publication and most of the findings in the Cork Report, including the introduction of the Individual Voluntary Arrangement and Company Voluntary Arrangement procedures.
Elements of the Act have been updated by the Enterprise Act 2002 which came into enforcement on 1 April 2004 and introduced amongst other things the popular "out-of-court" administration route.
Those considering the main Act should also refer to the Insolvency Rules 1986 and numerous Regulations and other amending legislation since 1986, and also to the best practice which applies to the administration of formal insolvency matters set out in the approved by the insolvency practitioner authorising bodies.
Further updates to the act were made by the Corporate Insolvency and Governance Act 2020 which a moratorium for companies that are likely to be become insolvent and gave additional reliefs for businesses that were adversely impacted the by COVID-19 pandemic in the United Kingdom.

Contents

The Insolvency Act 1986 essentially governs issues relating to personal bankruptcy and Individual Voluntary Arrangements and all administrative orders relating to company insolvency.

Companies Winding Up