Tag: Personal insolvency

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.

T he Insolvency and Bankruptcy Code, 2016 (Code) is the umbrella legislation for
insolvency resolution of corporate persons, partnership firms and individuals

The All-India Debt and Investment Survey (AIDIS) conducted by the National Statistical Office is a nationally representative survey of Indian households that collects information about the assets and liabilities of households.

Personal insolvency needs to be treated as a social insurance option. A mechanism which relies on the interaction between creditors and borrowers must be put in place

Anticipating the function and impact of India’s new personal insolvency and bankruptcy regime – A Youtube Video

As part of the Emerging Markets Finance Conference, 2017, organised by IGIDR in collaboration with Vanderbilt Law School, Bindu Ananth joined a discussion on India’s new personal insolvency and bankruptcy regime, along with Prof. Adam Feibelman of Tulane University Law School and Renuka Sane, Associate Professor, NIPFP.

We recently hosted a series of knowledge management sessions at our office, as part of which we had invited Richa Roy of AZB & Partners as one of the speakers.

While the corporate insolvency framework has seen a lot of activity, the individual insolvency framework in India consists merely of a pair of statutes legislated in the British era which today lie dormant for all practical purposes.