How to file for Bankruptcy? How to file for Bankruptcy?

Hi Team, my wife suffered cancer two years back and now three months back mother in law suffered and what all i have have been gone for medical expenses and taking care of them. I am unable to pay my credit card dues or my personal loan.. my monthly salary is 23K only but having debt around 25 L. Please help what can I do.. can i file banruptcy and i am ready to pay 10K for my debt every month.

Anik

Responded 8 months ago

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A.Dear Client,

The personal bankruptcy law has not yet been enacted, but there is another way. If the lender filed a proceeding against you, you can declare yourself bankrupt in court. That is, you have no money or assets. However, keep in mind that declaring a bankrupt has some consequences.
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Kishan Dutt Kalaskar Retired Judge

Responded 10 months ago

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A.Dear Sir,
Section 10 in The Provincial Insolvency Act, 1920
10. Conditions on which debtor may petition.—
(1) A debtor shall not be entitled to present an insolvency petition, unless he is unable to pay his debts and—
(a) his debts amount to five hundred rupees; or
(b) he is under arrest or imprisonment in execution of the decree of any Court for the payment of money; or
(c) an order of attachment in execution of such a decree has been made, and is subsisting, against his property.
(2) A debtor in respect of whom an order of adjudication 1[whether made under the Presidency-towns Insolvency Act, 1909 (3 of 1909), or under this Act has been annulled, owing to his failure to apply, or to prosecute an application for his discharge, shall not be entitled to present an insolvency petition without the leave of the Court by which the order of adjudication was annulled. Such Court shall not grant leave unless it is satisfied either that the debtor was prevented by any reasonable cause from presenting or prosecuting his application, as the case may be, or that the petition is founded on facts substantially different from those contained in the petition on which the order of adjudication was made.] State Amendments Himachal Pradesh.—Same as in Punjab. [Vide Himachal Pradesh Act 31 of 1976, sec. 3 (w.e.f. 1-4-1979).] Madhya Pradesh.—In section 10, in sub-section (1), in clause (a), for the words “five hundred rupees”, substitute the words “two hundred rupees”. [Vide C.P. Act 2 of 1936, sec. 2 read with M.P. Act 23 of 1958, sec. 3(1).] Punjab: Haryana: Chandigarh.—In section 10, in sub-section (1), insert after clause (a) the following clause namely:— “(aa) his debts amount to two hundred and fifty rupees, and he satisfies the Court that he is entitled to summary administration of his estate under section 74 of this Act; or” [Vide Punjab Act 7 of 1934, sec. 3 (w.e.f. 19-4-1935) read with 30 of 1958, sec. 4(1); Act 31 of 1966, sec. 88.] COMMENTS Adjudication as a matter of right If all the conditions of the section are satisfied, then the debtor is entitled to the order of adjudication as a matter of right and the same cannot be refused by the Court; K.R.K. Krishnappa Chettiar v. V.V.R. Kasiviswanathan, AIR 1966 Mad 331. Burden to prove The burden to prove that all the conditions of section 10 are satisfied is on the debtor; Siya Ram v. Bohra Kishori Lal, AIR 1933 All 841. Debt: Meaning of Under section 10, there is no need for more than one debt. The word “debt” means and includes a ‘single debt’; S. Damodaran Pillai v. K. Nanthedu Bava, AIR 1992 Ker 212. Res Judicata If the first petition is dismissed because the evidence could not be produced, the principle of res judicata will not apply to it; Hasan Din v. Kirpa Ram, AIR 1928 Lah 374. Second order If a person has been declared as an insolvent, he cannot apply for a second order of adjudication until he has been discharged from the first order or the order has been annulled; Ram Das v. Sultan Husain Khan, AIR 1929 Oudh 149. What debtor has to prove Under section 10, debtor must prove that he is not able to pay his debts, in order to be adjudicated as an insolvent; Bonagiri Yellalu v. Nagulavaram Chenchu Subbaiah, AIR 1972 AP 221.


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Abhimanyu Shandilya

Responded 10 months ago

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A.Dear Client
Lately the law for declaring and filing bankruptcy for companies have been made which allows the organizations to do so. The law for personal bankruptcy is yet not formulated but there is another way that can be done. When the lenders file a case against you then you can declare yourself as pauper in the court which means that you do not have any money or assets. But beware that declaring yourself pauper has several ramifications.
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