Filing Insolvency Petition-Government Employee-Reg
2 years ago
Dear Sir/Madam,
This is Krishnamohan from vizianagaram. My friend's father is working as a government employee and will be retired from services in 2024. He got debts from a few of the local people and paid interest and principal amounts regularly for a few years.He lost some amount in chits. And now the debts are few times more than the assets they had.
He didn't pay the interest this month only. So that few people would create false publicity that he was unable to pay the debts and putting pressure to pay immediately.
Can he file an Insolvency Petition, if so does it affect his Job?
His children are working as employees in govt.organisation. Are they responsible to pay the above debts?
Please suggest the same
A.Dear Client,
As per the facts mentioned, as your friend's father is a government employee, i.e., has a source of revenue and he will also get pension and PF post-retirement then he cannot file for insolvency whereas an operational creditor, the employee can file an insolvency petition under section 9 of IBC. Employees are classified to be the operational creditors under IBC. Thus enabling them to approach NCLT under IBC, if the employer or corporate person denies or fails to release the salaries to the employees.
As per the facts mentioned, as your friend's father is a government employee, i.e., has a source of revenue and he will also get pension and PF post-retirement then he cannot file for insolvency whereas an operational creditor, the employee can file an insolvency petition under section 9 of IBC. Employees are classified to be the operational creditors under IBC. Thus enabling them to approach NCLT under IBC, if the employer or corporate person denies or fails to release the salaries to the employees.
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A.Dear Client
The person cannot file an insolvency or bankruptcy case as he is in a job and post retirement he will also get PF and pension. Filing individual bankruptcy is little different where the person declares himself as pauper.
The person cannot file an insolvency or bankruptcy case as he is in a job and post retirement he will also get PF and pension. Filing individual bankruptcy is little different where the person declares himself as pauper.
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