Insolvency Law: Your Guide to Financial Relief

Rishabh Arora
Mar 23, 2023
2 min read

Financial difficulties can hit anyone, at any time. While there is no shame in falling on hard times, the stress and burden of debt can be overwhelming. In such situations, Insolvency & Bankruptcy Code, 2016 (I&B Code) offers a lifeline to both individuals and businesses struggling with debt.

At its core, I&B Code provides a legal mechanism through which debtors can receive relief from their financial obligations. Whether you are facing foreclosure, repossession, or simply cannot keep up with your monthly payments, insolvency law may offer the solutions you need.

For individuals, I&BB Code can take the form of bankruptcy. While the word bankruptcy may carry negative connotations, it is important to understand that it is a legal process designed to offer a fresh start to those who have fallen on hard times. Depending on the situation, individuals may file for bankruptcy under either Section 7 (Financial Creditor) or Section 9 (Operational Creditor) of the bankruptcy code.

Under I&B Code, individuals can have their unsecured debts discharged, meaning that they are no longer legally obligated to pay them. Examples of unsecured debts include credit card debt, medical bills, and personal loans. On the other hand, I&B Code offers individuals the opportunity to restructure their debts and create a more manageable repayment plan.

For businesses, I&B Code offers a variety of solutions based on their specific needs. These solutions can include debt restructuring, Resolution and liquidation. The right approach will depend on the business’s financial situation, but the ultimate goal is always to help the business achieve financial stability.

In order to take advantage of the benefits of I&B Code, debtors must work with experienced and knowledgeable attorneys who can guide them through the legal process. Law firms specializing in I&B Code can offer the expertise needed to navigate the complex laws and regulations of bankruptcy and other insolvency procedures.

At our law firm, we understand the complex and often confusing world of I&B Code. That is why we are dedicated to helping individuals and businesses struggling with debt find relief and regain financial stability. Whether you are facing foreclosure, repossession, or other financial challenges, our experienced attorneys can guide you through the legal process.