Shree Harini V, is an Research Associate at Dvara Research. She is an Econometrics post graduate from University of Madras with a Diploma in Data Science from IIT Madras with notable achievements such as UGC-NET(Economics) and GATE 2021 (All India Rank 95). Proficient in STATA, SPSS, R Programming, and Python, she has served as an academic writer team lead and contributed as a Research Associate at institutions like Management Development Institute, BITS Pilani, Hyderabad and at ISB, Mohali. She is committed to achieving her goals in the dynamic realm of data science.
The 2016 Insolvency and Bankruptcy Code (IBC) is a landmark legislation with the potential to impact every borrower. This paper focuses on Part III of the IBC, which deals with natural persons, proprietorships, and personal guarantors for corporate debt. Through the paper, we attempt to estimate the potential consequences of the Fresh Start Process (FSP) defined under this Part. The IBC lays out economic criteria that can qualify (or disqualify) an applicant for FSP. Under FSP, a borrower must be asset-lite, have a low income, and hold minimal outstanding debt to qualify. These thresholds determine the applicability of the process once the IBC is fully notified. Thus, empirical estimates regarding the effects of the provisions on the Indian credit market are crucial to deciphering the impact of the IBC, more specifically, the FSP.
