I am an individual in Lucknow unable to repay personal loans; can I file personal insolvency?
VI Asked by Vinod Mehta from India
Quick Answer
Individuals and partnership firms can file for insolvency under the Insolvency and Bankruptcy Code, 2016 (Part III) before the Debt Recovery Tribunal in Lucknow, or under the Provincial Insolvency Act, 1920 in States where Part III is not notified.
Detailed Legal Analysis
Individuals and partnership firms can file for insolvency under the Insolvency and Bankruptcy Code, 2016 (Part III) before the Debt Recovery Tribunal in Lucknow, or under the Provincial Insolvency Act, 1920 in States where Part III is not notified. The debtor must show inability to pay debts, and on admission, a moratorium and resolution process begins.
The order is appealable to the DRAT and Allahabad High Court on questions of law. Uttar Pradesh Rent Control Act 1972 may still govern State insolvency rules where Part III is not notified.
The process involves a resolution professional and a committee of creditors. Fresh start cases for low-income debtors have a simplified procedure.
Discharge releases the debtor from prior debts on completion.
Disclaimer: AI-generated for educational purposes only. Does not constitute legal advice. Consult a qualified practitioner.