ABSTRACT
English law has developed parallel systems for dealing with insolvent individuals and insolvent companies; the current regimes are outlined at the end of this explanation of their historical development. In the UK, unlike the United States, the term ‘bankruptcy’ is reserved for the insolvency of individuals and companies do not go into bankruptcy. Business insolvency is largely dealt with by the corporate insolvency system rather than by the personal insolvency system, although some insolvent businesses will be owned by individuals and be subject to bankruptcy law. This dichotomy mirrors the separate provisions of earlier times for insolvent traders (called bankruptcy law) and for other insolvent individuals (called insolvency law).
