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Lucknow, India Attorneys in related practice areas.
In India, the Insolvency and Bankruptcy Code, 2016, is the governing law for bankruptcy and debt related matters. This unified national law is applicable in Lucknow as well. The law aims to consolidate all insolvency and bankruptcy laws in India to address the issue of default in repayment of loans. It provides a time-bound process for insolvency resolution of individuals and corporate entities.
Engaging legal help when dealing with bankruptcy and debt related cases is recommended due to the complexity of the Insolvency and Bankruptcy Code. If an individual or a corporation is unable to repay their outstanding debts, they need legal advice to navigate the process of declaring insolvency, negotiating with creditors, or restructuring debt. Alternatively, if you are a creditor, a lawyer can help you understand your rights and recover your dues from insolvent entities.
The Insolvency and Bankruptcy Code works on two primary aspects: Insolvency Resolution and Liquidation. The resolution process must be completed within 180 days from the date of admission of the application. An insolvency professional administers the process. If the default is not resolved, the assets of the debtor are liquidated to repay the creditors. The National Company Law Tribunal (NCLT) is the adjudicating authority for insolvency resolutions for companies, while the Debt Recovery Tribunal (DRT) oversees insolvency resolutions for individuals and partnerships. In Lucknow, these national laws are applicable without any specific local changes.
All legal or equitable interests of the debtor at the time of the bankruptcy filing, can be considered part of the bankruptcy estate.
If the insolvency resolution process does not result in an agreement between debtor and creditors, the entity goes into liquidation, where its assets are sold to repay the creditors.
Debts such as domestic support obligations, some taxes and debt for most government funded or guaranteed educational loans or benefit overpayments cannot be discharged.
An insolvency professional is appointed to manage the debtor's assets, entertaining creditors' claims, and conducting the entire resolution process.
Yes, a debt settlement agreed upon by the debtor and a majority of credible creditors can potentially halt bankruptcy proceedings.
The Insolvency and Bankruptcy Board of India (IBBI) is the regulator for overseeing insolvency proceedings and entities like Insolvency Professional Agencies (IPA), insolvency professionals (IP) and Information Utilities (IU) in India. Up-to-date information can be found on its official website. The National Company Law Tribunal (NCLT) and Debt Recovery Tribunal (DRT) websites also have relevant information.
If you are facing bankruptcy or debt-related challenges, it is recommended to seek legal advice. An experienced lawyer in bankruptcy and debt law can guide you through the process, help protect your rights, and ensure the best possible outcome. You can contact the local Bar Association in Lucknow for referrals.
