The Insolvency Act 1985 consolidated and reformed the law relating to insolvency in Great Britain. This Act established a new framework for dealing with both corporate and individual insolvency, introducing significant changes to procedures such as winding-up, administration, and bankruptcy. It aimed to provide a more efficient and effective system for the resolution of financial distress, balancing the interests of creditors, debtors, and the wider economy. The legislation was a response to perceived deficiencies in the existing insolvency laws and sought to modernize the approach to business failures and personal debt.

As a piece of primary legislation, the Insolvency Act 1985 is regarded as a foundational text in British insolvency law. Its introduction marked a significant shift in how financial distress and business failure were managed, influencing subsequent legal developments and commercial practices. Legal professionals and academics would have analyzed its provisions extensively upon its enactment and in the years following, assessing its impact on the legal and economic landscape. The Act's enduring influence is evident in its continued relevance and the body of case law that has interpreted its clauses.