Who is Considered as a Personal Guarantor under IBC?
Personal guarantees are generally used in small or micro businesses or those with inadequate credit history. The Insolvency and Bankruptcy Code of 2016 provides a mechanism for creditors to recover the corporate debtor’s debts, even if the corporate debtor defaults on doing so, by having the corporate debtor have a personal guarantor. Personal Guarantor under […]
Under insolvency law, the Insolvency Bankruptcy Code, 2016, offers two processes for resolving the insolvency of a company or individual: the traditional insolvency procedure and the pre-packaged insolvency resolution process. These processes, while both aimed at resolving financial distress, differ in approach. The traditional insolvency process is a formal court-driven method, typically used for complex […]
In every field, a code of conduct must be followed, including by insolvency practitioners in the domain of insolvency law. The code of conduct for insolvency practitioners is outlined under the Insolvency and Bankruptcy Code, 2016, along with relevant regulations. Ethical considerations in insolvency practice must be adhered to throughout the insolvency process, ensuring fair […]
In insolvency proceedings, the insolvency practitioner takes on multiple roles, each demanding different responsibilities and skills depending on the stage of the process. One of their primary tasks is ensuring that the interests of the corporate debtor, creditors, stakeholders, and other parties are balanced without causing harm to another. Practitioners may act as liquidators, administrators, […]
As per the resolution plan under IBC submitted by the insolvency professional, the Committee of Creditors and the Adjudicating Authority can decide whether the company is to be liquidated. Understanding the exact format of a resolution plan under IBC is crucial to ensuring the success of the resolution process, which may lead to the financially […]
As per the Insolvency and Bankruptcy Code, 2016 and the relevant regulations, an Information Memorandum under IBC is a comprehensive document drafted by the resolution professional that contains all the relevant information of the corporate debtor to be conveyed to potential buyers and investors. This document also assists the insolvency professional in preparing the resolution […]
Liquidation essentially means that the revival or restructuring of the company was unsuccessful. The Company Liquidation Process is the final step of the insolvency process under the Insolvency and Bankruptcy Code, 2016 (IBC). Under IBC and the relevant regulations, there is a systematic manner in handling the process of company liquidation What is liquidation of […]
Understanding the insolvency process under the Insolvency and Bankruptcy Code, 2016, it’s crucial to grasp the difference between financial debt and operational debt. The core distinction lies in the nature of the debt, which determines the rights, roles, and responsibilities of the creditors. Financial creditors hold a significant influence, particularly in corporate insolvency resolution and […]
The Graduate Insolvency Programme (GIP) is a specialised course offered by the Indian Institute of Corporate Affairs (IICA) at its Manesar Campus. It is one of the most competitive exams specifically for the insolvency professionals as it admits only 52 candidates all over India. The eligibility for the GIP is restricted to individuals with an […]
This article aims at providing clarity on the distinct roles of a liquidator and an insolvency professional. Both of these positions are central to guiding a company through their financial difficulties, although the engagement of both in the insolvency process is distinct. While an IP has the main responsibility with supervising the resolution process having […]