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Bankruptcy and debt law in Mumbai is governed under the Insolvency and Bankruptcy Code, 2016 (IBC), a comprehensive legislation that deals with insolvency and bankruptcy for individuals, firms, limited liability partnerships (LLPs), and companies. The Law aims to consolidate the existing framework by creating a single law for insolvency and bankruptcy and provides a time-bound procedure for quick resolution of insolvency.
Legal complexities and intricacies around bankruptcy and debt laws require professional help. Legal support is crucial if you are facing insolvency, or your business is under financial stress. A lawyer will help you navigate through the bankruptcy process, protect your rights, represent you in court, assist you with the paperwork and negotiate with your creditors.
The IBC is the principal law governing bankruptcy and debt in Mumbai as well as rest of India. Important aspects of the IBC include provisions for corporate debtor eligibility, initiation of insolvency process, appointment of Interim Resolution Professional, applications to the Adjudicating Authorities, constitution of committee of creditors, liquidation order and process along with several rules and regulations relating to insolvency and bankruptcy.
The process begins with filing a bankruptcy petition, either by the debtor themselves or by their creditors. Once the application is admitted by the court, an Interim Insolvency Resolution Professional is appointed to take charge of the debtor's assets and business. The creditors committee is then established to decide the fate of the debtor's financial obligations.
When you declare bankruptcy, an interim insolvency resolution professional takes control over your assets. The professional then invites claims from all creditors and forms a resolution plan. If the committee of creditors agrees, the business restructures the debt in a manageable way. If not, the business goes into liquidation and the assets are sold off to repay creditors.
Yes, under the Insolvency and Bankruptcy Code, 2016, individuals can file for bankruptcy in Mumbai and anywhere in India. They can initiate the process at the Debt Recovery Tribunal (DRT).
The IBC stipulates a time limit of 180 days, extendable by a maximum of 90 days, for completion of the entire corporate insolvency process.
The lawyer assists you through the legal process of bankruptcy. This includes filing the bankruptcy application, representing you in court, negotiating with creditors, helping you to understand the law, its implications, and guiding you through various legal procedures.
In cases related to the IBC in Mumbai, you can refer to the Insolvency and Bankruptcy Board of India (IBBI). The Official Liquidator under the jurisdiction of the High Court of Bombay is another crucial government body. Online resources such as the Ministry of Corporate Affairs website also offer valuable information and updates.
If you need legal advice on bankruptcy and debt in Mumbai, consult with a lawyer who has expertise in insolvency and bankruptcy. Lawyers experienced in this field command deep knowledge of the IBC and can provide accurate guidance. To ensure you select an attorney suitable to your needs, you should consider their expertise, experience, and fee among other things.
