Q. Unable to repay debts

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posted 5 months ago

Q.Unable to repay debts
Hello Everyone,

If someone have debts in which they have huge debts where they lost money from gambling can they still file a Insolvency Petetion, he is still having a good job but the amount to repay is exceeding his earnings. So kindly suggest a solution for this.

The loan intrest was too high not able to decide in this situtation

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Mrighankhi Chakraborty

Experience: 2 Year(s)

Responded 4 months ago

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A. ) Hello client,

1.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.

2.Conditions to file insolvency petition:-

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

3.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

4.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.

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Manjula Shanmugasundaram

Experience: 19 Year(s)

Responded 5 months ago

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A. ) Yes, insolvency can be filed. Only thing is, the person should be first made aware of the consequences of insolvency.

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