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Bankruptcy Law in Patna, India, is a subset of the country's broader Insolvency and Bankruptcy Code (IBC), instituted in 2016. This law applies to companies, partnerships, and individuals, aiming to consolidate all insolvency-related laws across India and simplify the process of insolvency and bankruptcy proceedings. It provides a clear, timely, and systematic mechanism for resolving insolvency, enabling the smooth functioning of businesses, and ensuring they maintain their solvency with a higher emphasis on restructuring rather than punitive measures.
Professional legal help is often needed when dealing with bankruptcy due to its associated intricacies. Situations where you may require a lawyer include handling the process of declaring insolvency, understanding your rights and obligations under the law, dealing with creditors, managing paperwork and legal procedures, and navigating the complexities of bankruptcy and restructuring processes. A lawyer can guide you throughout the entire process, provide legal advice tailored to your specific situation, and ensure that your interests are adequately protected.
Bankruptcy cases in Patna are primarily governed by the Insolvency and Bankruptcy Code 2016 (IBC). The IBC has revolutionized the insolvency resolution process by setting strict timelines, defining roles and responsibilities for involved parties, and prioritizing creditors’ interests. Distinct sections of the IBC pertains to insolvency resolution and liquidation for corporate persons, insolvency resolution and bankruptcy for individuals and partnerships, and insolvency and bankruptcy for corporate guarantors and personal guarantors to corporate debtors. The National Company Law Tribunal (NCLT) handles the corporate insolvency resolution process while the Debt Recovery Tribunal deals with insolvency and bankruptcy cases related to individuals and partnerships.
Filing for bankruptcy in Patna involves lodging an application with the Debt Recovery Tribunal, which then evaluates and declares bankruptcy if all conditions are met. The process requires you to provide comprehensive details of your financial status.
The code allows you to keep certain essential assets, though they may differ on a case-by-case basis. Legal counseling is beneficial in understanding what you can retain.
The code mandates that the resolution process should finish within 180 days from the date of admission of the application, although an extension of 90 days may be granted in certain situations.
Not all debts may be discharged during bankruptcy. It heavily depends on your situation, type of debt, and relevant sections of the IBC.
Yes, the declaration of bankruptcy will result in the initiation of a moratorium period, which prevents creditors from taking legal action.
Both individuals and businesses in financial distress can file for bankruptcy.
The Code typically allows the continuation of the business under a resolution professional. Specifics, however, may vary across situations.
Acquiring loans after declaring bankruptcy might be more challenging due to significantly lower credit scores. However, it's not impossible but might require much effort and time to reestablish financial trust.
A resolution professional is a person appointed to manage the debtor's assets and affairs while the bankruptcy procedure is ongoing.
The proceedings can be stopped under various conditions, like the approval of a resolution plan by creditors and the tribunal or repayment of the debt within the stipulated time.
The Insolvency and Bankruptcy Board of India (IBBI) manages and implements the IBC. It provides various resources and guides that can be beneficial. Additionally, the National Company Law Tribunal (NCLT) and the Debt Recovery Tribunal (DRT) are significant government bodies handling different aspects of the insolvency process.
Should you need legal assistance regarding bankruptcy in Patna, consider hiring a bankruptcy lawyer experienced in dealing with such matters. Find a lawyer who understands your needs and can provide personalized, practical advice as per your specific circumstance. Ensure you gather all necessary documents, adhere to all legal procedures, and maintain stringent follow-ups. A clear understanding of your financial situation and objective decision-making will be crucial throughout the process.
