Best Bankruptcy Lawyers in Haryana

About Bankruptcy Law in Haryana, India

Bankruptcy law in Haryana, as with the rest of India, is governed by the national framework provided by the Insolvency and Bankruptcy Code (IBC) of 2016. The IBC provides a mechanism for resolving insolvency for incorporated entities and individuals. It aims to consolidate existing bankruptcy laws in India and simplify the insolvency process, thereby ensuring quick and efficient resolution. In Haryana, as well as other states, this law is administered by the National Company Law Tribunal (NCLT) for corporate insolvency, while individual insolvency is overseen by the Debt Recovery Tribunal (DRT).

Why You May Need a Lawyer

Individuals and businesses may find themselves in need of a lawyer for various reasons related to bankruptcy. Common situations include:

• Dealing with overwhelming debt that cannot be repaid.
• Creditors initiating recovery proceedings against individuals or businesses.
• The need to understand rights and obligations under the IBC.
• Assistance with filing bankruptcy applications in NCLT or DRT.
• Seeking protection from creditor harassment.
• Renegotiating terms with creditors during a Corporate Insolvency Resolution Process (CIRP).
• Handling complex legal documents and proceedings in bankruptcy cases.

Local Laws Overview

While the IBC is a central legislation, its implementation does see some regional nuances. In Haryana, specific aspects to consider include:

• The jurisdiction for corporate cases typically falls under the NCLT bench located in Chandigarh, which serves as the adjudicating authority.
• Haryana's economic fabric and agrarian issues could impact how insolvency proceedings unfold, especially concerning individual insolvency cases.
• Local financial institutions and cooperative societies may be involved in the bankruptcy process, necessitating coordination with regional offices during insolvency proceedings.

Frequently Asked Questions

What is the Insolvency and Bankruptcy Code (IBC)?

The IBC is a law enacted in 2016 to consolidate and amend the laws related to reorganization and insolvency for companies, partnerships, and individuals in India. It aims to facilitate time-bound resolution of insolvency, maximizing the value of assets, and promote entrepreneurship.

Who can file for bankruptcy under the IBC in Haryana?

Both individual debtors and corporate entities experiencing financial distress can file for bankruptcy. Creditors can also initiate insolvency proceedings against debtors.

Where should I file my bankruptcy case in Haryana?

Corporate bankruptcy cases are filed with the NCLT bench located in Chandigarh, while individual bankruptcy cases are handled by the Debt Recovery Tribunal (DRT).

How long does the insolvency process take?

For corporate insolvency, the IBC stipulates a 180-day period, extendable by 90 days. For individual insolvency, the timeline can vary depending on the complexity of the case.

Can individuals apply for bankruptcy under the IBC?

Yes, individuals and partnerships can apply for bankruptcy under the IBC. The process differs slightly from corporate insolvency and is handled by DRTs.

What happens to a company's assets during bankruptcy proceedings?

During bankruptcy proceedings, a moratorium is imposed, preventing the sale or transfer of assets, which are then evaluated for possible resolution plans or liquidation to pay back creditors.

What is a Resolution Professional, and what role do they play?

A Resolution Professional is an insolvency expert appointed by creditors to manage the insolvency proceedings. They evaluate and oversee the process to resolve the insolvency efficiently.

What is the time frame to appeal a decision made by the NCLT?

An appeal against an NCLT order must be filed within 30 days of the order, although a grace period of up to 15 days can be granted for extraordinary circumstances.

How does Haryana treat bankruptcy fraud?

Bankruptcy fraud is a severe offense under the IBC, leading to penalties, imprisonment, or both for concealing assets or providing false information during proceedings.

Is it possible to settle debts outside of court through the IBC?

Yes, the IBC facilitates out-of-court settlements between debtors and creditors, often encouraged before resorting to formal insolvency proceedings.

Additional Resources

For those seeking further information or assistance in Haryana, consider the following resources:

• National Company Law Tribunal (NCLT) Chandigarh - Handles corporate insolvencies.
• Debt Recovery Tribunal (DRT) - Deals with individual insolvency cases.
• State Legal Services Authority, Haryana - Provides free legal aid for those eligible.
• Insolvency and Bankruptcy Board of India (IBBI) - Offers comprehensive guidelines and updates on IBC.

Next Steps

If you require legal assistance with bankruptcy in Haryana, consider taking the following steps:

1. Consult a qualified insolvency lawyer to assess your situation and explore your options.
2. Prepare all necessary documentation, including financial statements, debt records, and any legal notices received.
3. Attend legal consultations to understand the implications of filing for bankruptcy and strategic advice for your case.
4. Stay informed about your rights and obligations under the IBC to ensure compliance with the process.

Always seek professional advice tailored to your circumstances to navigate the complexities of bankruptcy law effectively.