Best Bankruptcy Lawyers in Prayagraj

About Bankruptcy Law in Prayagraj, India

Bankruptcy law in Prayagraj, India, is governed by the Insolvency and Bankruptcy Code (IBC) 2016. This comprehensive legislation was enacted to consolidate and amend laws relating to reorganisation and insolvency resolution of corporate persons, partnerships, and individuals in a time-bound manner. The goal is to promote entrepreneurship, availability of credit, and balance the interests of all stakeholders by establishing an effective legal framework for timely resolution and recovery of distressed entities.

Why You May Need a Lawyer

There are numerous situations where individuals or businesses may require legal assistance regarding bankruptcy:

• Filing for Bankruptcy: Navigating the complex procedures and documentation required to file for bankruptcy.
• Debt Resolution: Negotiating with creditors for a feasible debt resolution plan.
• Asset Protection: Protecting personal or business assets from being seized during the bankruptcy process.
• Legal Representation: Representing clients in court proceedings related to insolvency or bankruptcy.
• Compliance: Ensuring that all legal requirements and timelines under the IBC and local regulations are met.

Local Laws Overview

The Insolvency and Bankruptcy Code (IBC), 2016, lays out the rules and procedures for dealing with financial distress in Prayagraj. Key aspects of local laws relevant to bankruptcy include:

• Initiation of Insolvency Proceedings: Insolvency proceedings can be initiated by the debtor or creditors when a default occurs.
• Moratorium Period: A moratorium is declared to prevent creditors from taking any action during the insolvency resolution process.
• Resolution Plan: The resolution professional formulates a plan to resolve the debtor's financial distress within a stipulated timeframe.
• Liquidation: If the resolution plan fails, the assets of the debtor may be liquidated to repay the creditors.

Frequently Asked Questions

What is the minimum amount of default required to initiate the insolvency process?

The minimum amount of default for initiating insolvency proceedings is Rs. 1 lakh. For corporate debtors, the amount is higher and stipulated under specific guidelines.

Can individuals file for bankruptcy?

Yes, individuals and partnerships can file for bankruptcy under the provisions of the IBC.

What is the role of the Insolvency Professional?

The Insolvency Professional manages the insolvency resolution process, including asset management and formulation of the resolution plan.

How long does the insolvency resolution process take?

The insolvency resolution process must be completed within 180 days, with a possible extension of additional 90 days.

What is a moratorium, and when does it commence?

A moratorium prevents creditors from taking any legal action during the insolvency resolution process. It commences on the insolvency commencement date.

Are there any penalties for fraudulent practices during bankruptcy proceedings?

Yes, fraudulent practices during insolvency or bankruptcy proceedings can attract severe penalties, including imprisonment and fines.

What happens if the resolution plan is not approved?

If the resolution plan is not approved, the debtor's assets may be liquidated to repay creditors.

Can a bankruptcy order be challenged?

Yes, a bankruptcy order can be appealed to the National Company Law Tribunal (NCLT) or higher authorities.

What are the rights of secured creditors in a bankruptcy case?

Secured creditors have priority over unsecured creditors when it comes to repayment from the proceeds of the debtor's assets.

Is there a fee for filing a bankruptcy petition?

Yes, there are nominal fees associated with filing a bankruptcy petition, which vary depending on the nature and complexity of the case.

Additional Resources

Here are some resources and organizations that can provide additional information or assistance related to bankruptcy in Prayagraj:

• Insolvency and Bankruptcy Board of India (IBBI): The regulatory body responsible for implementing the IBC.
• National Company Law Tribunal (NCLT): The adjudicating authority for insolvency resolution and bankruptcy proceedings.
• Local Legal Aid Clinics: Law schools and non-profits often offer free legal advice and representation.

Next Steps

If you need legal assistance with bankruptcy in Prayagraj, follow these steps:

1. Identify Your Needs: Determine whether you require assistance with filing bankruptcy, negotiating with creditors, or any other specific issue.
2. Consult a Lawyer: Contact a local lawyer who specializes in bankruptcy and insolvency. Schedule a consultation to discuss your case.
3. Gather Documentation: Collect all relevant financial documents, contracts, and correspondence related to your debts and assets.
4. Understand the Fees: Clarify the fee structure and any other costs involved in the legal process.
5. Proceed with Filing: Follow your lawyer’s advice to proceed with the necessary legal filings and court proceedings.

Remember, it is crucial to act promptly and seek professional legal advice to navigate the complexities of bankruptcy law effectively.