ABSTRACT
This chapter evaluates the current state of bankruptcy law in the light of the demands of changing socio-economic priorities. The avowed purpose of bankruptcy law is to provide a formal regime for the settlement of debt in circumstances where the creditor is unable to pay and where there exists a deficiency of assets. There are significant differences in the personal insolvency regimes operating within the UK. Insolvency is an economic condition that may lead to bankruptcy. An individual cannot be declared bankrupt without being insolvent. Moreover, the concept of insolvency extends both to natural persons and companies. In English law, the law of bankruptcy deals only with individuals. Bankruptcy may be viewed on one level as an intricate game designed to enable players who have been parties to a credit transaction to snatch or retain assets. Regulating bankruptcy is a major policy objective in all developed jurisdictions.
