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Q.Debt trapped
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Q. Debt trapped

Hello, I am working in a BPO in Noida. My problem is very serious and I am almost going to depression now.Because, I have a debt of around 12 lakhs through credit cards and personal loan. I have no idea how it happens but I am unable to repay it on time. I am earning 30000/ a month which is not enough to pay a minimum amount for my credit card bill. So, Please advise what should I do now.
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A. Already answered.
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Shreyash Mohta

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Shreyash Mohta

Experience: 1 Year(s)

Responded 1 month ago

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Anonymous

Replied 1 month ago

Thanks sir!

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A. Section 10 of Insolvency Act protects you.

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A. Dear client in your case yes, a person can declare himself insolvent. That being said, the person should be a corporate debtor (a company). Insolvency or bankruptcy can be filed in India, having said that, insolvency petition can be filed only if your liabilities exceed your assets. there is no one will be assured about giving you loan or debt.you can declared insolvent to yourself and file application for this.

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Deepak Bade

Experience: 9 Year(s)

Responded 1 month ago

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Anonymous

Replied 1 month ago

Thanks sir for your valuable advice. However, I have no idea about insolvency and all. How and where can I file the insolvency suit? What are the procedure needed? Would you please give me some inputs?
I will be very grateful sir!
Thanks

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Deepak Bade

Experience: 9 Year(s)

Replied 1 month ago

How to File Insolvency Petition
An individual can file an insolvency petition if he/she is unable to pay his/her debts and needs protection from creditors. Filing of insolvency is governed by the Provisional Insolvency Act of 1920 and in this article, we look at the procedure for filing insolvency petition in India.

When Insolvency Petition can be Filed by an Individual
An individual can file an insolvency petition if he/she is unable to pay his/her debts on fulfillment of any of the following three conditions:

Debts amount to more than Rs.500
Individual is under arrest or imprisonment in execution of a money decree
There is an subsisting order of attachment against his/her property in execution of such decree
When Insolvency Petition can be Filed by Creditor
A creditor can file an insolvency petition under the following conditions:

Total amount of debt due to the creditor is more than Rs.500
The debt is already due or at a future date
Insolvency petition has been filed within three months of the commission of act of insolvency
Where Insolvency Petition can be Filed
Insolvency petition can be filed at a district court having jurisdiction in which the debtor resides or carries on business. If the debtor has already been arrested or imprisoned, then the insolvency petition can be filed where he/she is in custody. Once an insolvency petition is filed, the Court can appoint an interim receiver after presentation of the insolvency petition or before an order is made. On making an order of adjudication, the property of an insolvent individual would vest with the official assignee or the receiver and becomes divisible among the creditors.

Distribution of Assets
The distribution of assets of an insolvent individual are executed as per the priority of debt provided by the Provincial Insolvency Act of 1920. Under the Act, the following dues have highest priority to all other debts:

Debts due to the local government or any local authority;
Salary or wages, not exceeding Rs.20, of any clerk, servant or labourer, for services rendered to the insolvent individual during four months preceding the date of presentation of insolvency petition.
Rent due to the landlord, for an amount not exceeding one month’s rent.
Once the above payments are made, all debts proved in the insolvency petition are to be paid ratably according to the amount of debts, without any preference amongst the creditors. After the order of adjudication and taking into consideration the report from the official assignee or receiver, the court may grant an absolute order of discharge. The order of discharge releases the debtor from all debt payable, except for any debt due to the Government and any debt incurred due to fraud or fraudulent breach of trust.

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Deepak Bade

Experience: 9 Year(s)

Replied 1 month ago

Dear client here is the details procedure for file insolvency suit.-
How to File Insolvency Petition
An individual can file an insolvency petition if he/she is unable to pay his/her debts and needs protection from creditors. Filing of insolvency is governed by the Provisional Insolvency Act of 1920 and in this article, we look at the procedure for filing insolvency petition in India.

When Insolvency Petition can be Filed by an Individual
An individual can file an insolvency petition if he/she is unable to pay his/her debts on fulfillment of any of the following three conditions:

Debts amount to more than Rs.500
Individual is under arrest or imprisonment in execution of a money decree
There is an subsisting order of attachment against his/her property in execution of such decree
When Insolvency Petition can be Filed by Creditor
A creditor can file an insolvency petition under the following conditions:

Total amount of debt due to the creditor is more than Rs.500
The debt is already due or at a future date
Insolvency petition has been filed within three months of the commission of act of insolvency
Where Insolvency Petition can be Filed
Insolvency petition can be filed at a district court having jurisdiction in which the debtor resides or carries on business. If the debtor has already been arrested or imprisoned, then the insolvency petition can be filed where he/she is in custody. Once an insolvency petition is filed, the Court can appoint an interim receiver after presentation of the insolvency petition or before an order is made. On making an order of adjudication, the property of an insolvent individual would vest with the official assignee or the receiver and becomes divisible among the creditors.

Distribution of Assets
The distribution of assets of an insolvent individual are executed as per the priority of debt provided by the Provincial Insolvency Act of 1920. Under the Act, the following dues have highest priority to all other debts:

Debts due to the local government or any local authority;
Salary or wages, not exceeding Rs.20, of any clerk, servant or labourer, for services rendered to the insolvent individual during four months preceding the date of presentation of insolvency petition.
Rent due to the landlord, for an amount not exceeding one month’s rent.
Once the above payments are made, all debts proved in the insolvency petition are to be paid ratably according to the amount of debts, without any preference amongst the creditors. After the order of adjudication and taking into consideration the report from the official assignee or receiver, the court may grant an absolute order of discharge. The order of discharge releases the debtor from all debt payable, except for any debt due to the Government and any debt incurred due to fraud or fraudulent breach of trust.
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