About Bankruptcy Law in India
Bankruptcy, also known as insolvency, refers to a legal process that allows individuals or businesses to seek relief from their debts that they are unable to pay. Bankruptcy laws in India are governed by the Insolvency and Bankruptcy Code, 2016. This code consolidates the laws related to insolvency and bankruptcy and aims to provide a time-bound process for resolving insolvency in a manner that is fair and orderly.
Why You May Need a Lawyer
There are various situations where you may need to seek legal advice from a bankruptcy lawyer in India. Some common instances include if you are facing financial difficulties and are unable to repay your debts, if your business is struggling and you are considering bankruptcy as an option, or if you are a creditor seeking to recover debts from a bankrupt entity.
Local Laws Overview
Some key aspects of local laws in India that are particularly relevant to bankruptcy include the Insolvency and Bankruptcy Code, 2016, which outlines the procedures for initiating insolvency resolution processes, liquidation, and bankruptcy. Additionally, the National Company Law Tribunal (NCLT) and the Insolvency and Bankruptcy Board of India (IBBI) play crucial roles in regulating bankruptcy proceedings in the country.
Frequently Asked Questions
1. What is the difference between insolvency and bankruptcy?
Insolvency is a financial state where an individual or company is unable to repay their debts, while bankruptcy is a legal process that allows them to seek relief from these debts.
2. How can I initiate bankruptcy proceedings in India?
Bankruptcy proceedings in India can be initiated by either the debtor themselves or by a creditor who is owed money by the debtor. The process usually involves filing a petition with the National Company Law Tribunal.
3. What are the consequences of declaring bankruptcy in India?
Declaring bankruptcy in India can have various consequences, such as the sale of assets to repay creditors, restrictions on obtaining credit in the future, and potential damage to your credit rating.
4. How long does the bankruptcy process take in India?
The bankruptcy process in India is designed to be completed within a specified time frame, which is typically 180 days with the possibility of an extension up to 90 days.
5. Can a bankrupt individual or company continue to operate their business?
In some cases, a bankrupt individual or company may be allowed to continue operating their business under the supervision of a resolution professional appointed by the NCLT.
6. Is it possible to avoid bankruptcy in India?
Yes, there are various alternatives to bankruptcy in India, such as debt restructuring, debt settlement, and informal arrangements with creditors.
7. What are the rights of creditors in bankruptcy proceedings?
Creditors have the right to participate in bankruptcy proceedings, submit their claims, and receive a share of the assets of the debtor that are sold to repay debts.
8. Can a bankrupt individual or company appeal the decision of the NCLT?
Yes, a bankrupt individual or company has the right to appeal the decision of the NCLT to the National Company Law Appellate Tribunal (NCLAT).
9. What happens to the employees of a bankrupt company?
Employees of a bankrupt company are considered operational creditors and are entitled to receive their dues as per the provisions of the Insolvency and Bankruptcy Code.
10. How can I find a reputable bankruptcy lawyer in India?
You can find a reputable bankruptcy lawyer in India by seeking recommendations from trusted sources, conducting online research, or contacting the Bar Council of India for referrals.
Additional Resources
Some additional resources that may be helpful for someone in need of legal advice related to bankruptcy in India include the Insolvency and Bankruptcy Board of India (IBBI) website, the National Company Law Tribunal (NCLT) website, and the Bar Council of India.
Next Steps
If you are considering bankruptcy or are facing financial difficulties, it is advisable to consult with a qualified bankruptcy lawyer in India who can guide you through the legal process and help you understand your rights and options. You can schedule a consultation with a bankruptcy lawyer to discuss your specific situation and determine the best course of action.
Lawzana helps you find the best lawyers and law firms in India through a curated and pre-screened list of qualified legal professionals. Our platform offers rankings and detailed profiles of attorneys and law firms, allowing you to compare based on practice areas, including Bankruptcy, experience, and client feedback.
Each profile includes a description of the firm's areas of practice, client reviews, team members and partners, year of establishment, spoken languages, office locations, contact information, social media presence, and any published articles or resources. Most firms on our platform speak English and are experienced in both local and international legal matters.
Get a quote from top-rated law firms in India - quickly, securely, and without unnecessary hassle.
Disclaimer:
The information provided on this page is for general informational purposes only and does not constitute legal advice. While we strive to ensure the accuracy and relevance of the content, legal information may change over time, and interpretations of the law can vary. You should always consult with a qualified legal professional for advice specific to your situation.
We disclaim all liability for actions taken or not taken based on the content of this page. If you believe any information is incorrect or outdated, please
contact us, and we will review and update it where appropriate.
