Information about insolvency petition
8 months ago
Hi sir/madam,
I am working as a software employee in MNC company. I took loan from 30 lacs from various banks and other loan apps. Due to some reasons I lost all the money in share market. I have paid few emi's now I am not in the situation to repay back loans. I requested them to give time they not listening and asking reply loan at any cost. So is IP will help me if yes how it will help me. Pls guide me
A.Dear client,
In the prevailing situation, you may file a petition for bankruptcy under the Provincial Insolvency Act, of 1920, if you are unable to repay a debt/losn greater than ₹500. After analyzing whether the conditions for filing for a bankruptcy petition have been met, the court may accept or reject the application. Until the decision on the application is taken, an interim receiver takes possession of the property of the debtor/borrower. If the application is admitted, the court can apply a stay on any legal proceedings against the property or assets of the debtor/borrower. In other words, you can get a stay order against further recovery efforts by your creditors. Once your application is admitted, your property vests with the “receiver" appointed by the Court. This official then distributes your assets among the creditors, unless a compromise proposed by you has been accepted by your creditors and the court. Once this process is completed, you will be “discharged from bankruptcy" by the court, giving you the opportunity to build your life and finances afresh, without being hounded by your previous creditors.
In the prevailing situation, you may file a petition for bankruptcy under the Provincial Insolvency Act, of 1920, if you are unable to repay a debt/losn greater than ₹500. After analyzing whether the conditions for filing for a bankruptcy petition have been met, the court may accept or reject the application. Until the decision on the application is taken, an interim receiver takes possession of the property of the debtor/borrower. If the application is admitted, the court can apply a stay on any legal proceedings against the property or assets of the debtor/borrower. In other words, you can get a stay order against further recovery efforts by your creditors. Once your application is admitted, your property vests with the “receiver" appointed by the Court. This official then distributes your assets among the creditors, unless a compromise proposed by you has been accepted by your creditors and the court. Once this process is completed, you will be “discharged from bankruptcy" by the court, giving you the opportunity to build your life and finances afresh, without being hounded by your previous creditors.
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