Insolvency & Bankruptcy in India
You also want an ePaper? Increase the reach of your titles
YUMPU automatically turns print PDFs into web optimized ePapers that Google loves.
<strong>Insolvency</strong> & <strong>Bankruptcy</strong><br />
Presented By:<br />
Registrationwala
What is <strong>Insolvency</strong><br />
<br />
<br />
<br />
<strong>Insolvency</strong> is a state of be<strong>in</strong>g where an<br />
entity is not able to repay the debts to<br />
its creditors with<strong>in</strong> the prescribed<br />
time<br />
The <strong>in</strong>solvent entity/<strong>in</strong>solvent debtor<br />
can either be a person or a company<br />
If the debtor is a company, then they<br />
are referred to as corporate debtors<br />
The creditors can either be<br />
operational or f<strong>in</strong>ancial creditors
What is <strong>Bankruptcy</strong><br />
<br />
<br />
<br />
<strong>Bankruptcy</strong> refers to a declaration<br />
of <strong>in</strong>solvency<br />
It is only after this declaration that<br />
the <strong>Insolvency</strong> and <strong>Bankruptcy</strong><br />
Board of <strong>India</strong> steps <strong>in</strong><br />
<strong>Bankruptcy</strong> declaration can either<br />
be filed by the debtor or the<br />
creditors<br />
When bankruptcy is declared,<br />
<strong>in</strong>solvency resolution process is<br />
<strong>in</strong>itiated.
<strong>Insolvency</strong> In Bus<strong>in</strong>ess<br />
<br />
<br />
<br />
<br />
<strong>Insolvency</strong> <strong>in</strong> bus<strong>in</strong>ess refers to when a company has gone <strong>in</strong>solvent.<br />
It is a case when the company is not able to pay operational or f<strong>in</strong>ancial credit.<br />
When a bus<strong>in</strong>ess goes <strong>in</strong>solvent, the employees of that bus<strong>in</strong>ess suffer.<br />
Not be<strong>in</strong>g able to pay the employees is an ex<strong>amp</strong>le of <strong>in</strong>ability repay<br />
operational credit.
What Happens When A Company<br />
Becomes Insolvent<br />
<br />
<br />
<br />
<br />
After a company becomes <strong>in</strong>solvent, either they or the<br />
operational/f<strong>in</strong>ancial creditors can file to <strong>in</strong>itiate the<br />
<strong>in</strong>solvency resolution process.<br />
The form used to file this petition comes under section<br />
9.<br />
If the form is accepted, the <strong>in</strong>solvency resolution<br />
process <strong>in</strong>itiates.<br />
At the end of the resolution, either the company is sold<br />
or the assets of the power po<strong>in</strong>t debtor are liquidated.<br />
https://registrationwala.wordpress.com/2018/12/17/what-is-<strong>in</strong>solvency-andbankruptcy/
What Is Personal <strong>Insolvency</strong><br />
<br />
<br />
<br />
<br />
If the <strong>in</strong>solvent entity is a s<strong>in</strong>gle person, then it is the case of personal<br />
<strong>in</strong>solvency.<br />
The matter of personal <strong>in</strong>solvency is handled by Debt Recovery Tribunal.<br />
Personal <strong>in</strong>solvency does not take much time to be resolved.<br />
Personal <strong>in</strong>solvency can lead to the need of personal assets to be liquidated.<br />
Personal <strong>Insolvency</strong>
Contact Us<br />
<br />
+91-8882-580-580<br />
support@registrationwala.com<br />
https://www.registrationwala.com/