Insolvency is the situation where the debtor is not able to pay back to the creditor. Bankruptcy is the legal declaration of Insolvency. So, Insolvency is a financial condition and Bankruptcy is a legal position. All insolvencies does not resulted into bankruptcy. Before the enactment of The Insolvency and Bankruptcy Code, 2016, the provisions relating to insolvency and bankruptcy were fragmented and there was no single law to deal with insolvency and bankruptcy in India. The Insolvency and Bankruptcy Code, 2016 applies to companies and individuals. It provides for a time-bound process to resolve insolvency,which was lacking earlier regulations. When a default in repayment occurs, creditors gain control over debtor’s assets and must take decisions to resolve insolvency within a 180-day period. To ensure an uninterrupted resolution process, the Code also provides immunity to debtors from resolution claims of creditors during this period. The Code also consolidates provisions of the current legislative framework to form a common forum for debtors and creditors of all classes to resolve insolvency.
- Planning and resolution strategy formulation
- Resolution plan formulation
- Assistance to Resolution Professional
- Appearance before Regulators
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