Gone Bankrupt - I have huge debts
1 year ago
Hi !
I have huge debts (30 lacs) & i m not in a position to pay. Loan on credit card blocking the limit. What do I do now. I do not have any property of my own.. I m disowned by my family too. what shall I do now?
A.Dear client,
You need to declare bankruptcy and file for insolvency. When you file for the insolvency under the Presidency Towns Insolvency Act, 1909, the possession of the assets shall be taken over by the receiver/ assignee appointed by the court. Then a repayment plan will be considered, prepared and placed before the creditors. Then a plan is prepared for payments to your creditors as full and final discharge of all your obligations in a phased manner.
Thank you.
You need to declare bankruptcy and file for insolvency. When you file for the insolvency under the Presidency Towns Insolvency Act, 1909, the possession of the assets shall be taken over by the receiver/ assignee appointed by the court. Then a repayment plan will be considered, prepared and placed before the creditors. Then a plan is prepared for payments to your creditors as full and final discharge of all your obligations in a phased manner.
Thank you.
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A.Dear Sir,
You may file insolvent petition and also disown your family thus you may avoid creditors.
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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.
You may file insolvent petition and also disown your family thus you may avoid creditors.
=============================================================================
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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