Not repaying loan EMi's more than 180 days
7 months ago
I am having almost 12L loans and credit card bills now I am jobless past 2years even single penny I am not having how to get this , I am planning to file a insolvency petition, what happens if I file a insolvency petition
Please guide me
A.Dear Client,
Under the Provincial Insolvency Act,1920, you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing whether the conditions for filing of bankruptcy 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. If the application is admitted, the court can apply a stay on any legal proceedings against the property or assets of the debtor. 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. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward to resolve the crisis.
Under the Provincial Insolvency Act,1920, you can file for bankruptcy if you are unable to repay a debt greater than ₹500. After analyzing whether the conditions for filing of bankruptcy 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. If the application is admitted, the court can apply a stay on any legal proceedings against the property or assets of the debtor. 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. Further, a quick counseling session with a certified credit counselor can help you to discover your options and choose the right path forward to resolve the crisis.
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A.Dear Client,
In India, the Insolvency and Bankruptcy Code (IBC) governs insolvency proceedings. If you are facing financial difficulties and are unable to repay your debts, you may consider filing for insolvency under the IBC. You, as a debtor, can file a petition for insolvency either voluntarily or in response to a creditor's application. A resolution professional (RP) is appointed to oversee the insolvency process. Once the insolvency process begins, a moratorium is imposed, which means that creditors cannot take legal action to recover their debts during this period. This gives you some relief from immediate debt collection efforts.The RP will evaluate your financial situation and work on a resolution plan. The goal is to find a way to repay creditors or restructure your debts in a way that is beneficial for both parties. If necessary, a Committee of Creditors (CoC) is formed to represent the interests of creditors. The CoC will assess and vote on the resolution plan. If the CoC approves a resolution plan by a certain majority, it is submitted to the National Company Law Tribunal (NCLT) for approval. If the NCLT approves the plan, it becomes binding on all stakeholders. If a resolution plan is not approved, the NCLT may order the liquidation of your assets to repay creditors. Once the insolvency process is complete and the resolution plan is implemented, you may be discharged from your remaining debts, subject to the terms of the plan.
It's essential to understand that filing for insolvency is a significant step and should not be taken lightly. Consult with a lawyer who can assess your specific situation and guide you through the process.
In India, the Insolvency and Bankruptcy Code (IBC) governs insolvency proceedings. If you are facing financial difficulties and are unable to repay your debts, you may consider filing for insolvency under the IBC. You, as a debtor, can file a petition for insolvency either voluntarily or in response to a creditor's application. A resolution professional (RP) is appointed to oversee the insolvency process. Once the insolvency process begins, a moratorium is imposed, which means that creditors cannot take legal action to recover their debts during this period. This gives you some relief from immediate debt collection efforts.The RP will evaluate your financial situation and work on a resolution plan. The goal is to find a way to repay creditors or restructure your debts in a way that is beneficial for both parties. If necessary, a Committee of Creditors (CoC) is formed to represent the interests of creditors. The CoC will assess and vote on the resolution plan. If the CoC approves a resolution plan by a certain majority, it is submitted to the National Company Law Tribunal (NCLT) for approval. If the NCLT approves the plan, it becomes binding on all stakeholders. If a resolution plan is not approved, the NCLT may order the liquidation of your assets to repay creditors. Once the insolvency process is complete and the resolution plan is implemented, you may be discharged from your remaining debts, subject to the terms of the plan.
It's essential to understand that filing for insolvency is a significant step and should not be taken lightly. Consult with a lawyer who can assess your specific situation and guide you through the process.
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