INDIVIDUAL INSOLVENCY
FAQs ON INDIVIDUAL INSOLVENCY UNDER IBC
The insolvency and debt resolution process in India has in the past involved the simultaneous operation of several statutory instruments. These include the Sick Industrial Companies Act, 1985, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, and the Companies Act, 2013. Broadly, these statutes provided for a disparate process of debt restructuring, and asset seizure and realization in order to facilitate the satisfaction of outstanding debts.
With the introduction of the Insolvency and Bankruptcy Code in 2016 for corporate, the country has witnessed several significant resolutions and liquidations which has given a certain amount of satisfaction to lenders. The process under IBC is time bound and has been fairly effective compared to other . The notification of individual insolvency for personal guarantors opens up one more avenue for debt resolutions for lenders in India.
The insolvency and debt resolution process in India has in the past involved the simultaneous operation of several statutory instruments. These include the Sick Industrial Companies Act, 1985, the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002, the Recovery of Debt Due to Banks and Financial Institutions Act, 1993, and the Companies Act, 2013. Broadly, these statutes provided for a disparate process of debt restructuring, and asset seizure and realization in order to facilitate the satisfaction of outstanding debts.
With the introduction of the Insolvency and Bankruptcy Code in 2016 for corporate, the country has witnessed several significant resolutions and liquidations which has given a certain amount of satisfaction to lenders. The process under IBC is time bound and has been fairly effective compared to other . The notification of individual insolvency for personal guarantors opens up one more avenue for debt resolutions for lenders in India.