Insolvency · Bankruptcy · Corporate Debt Resolution
Reviving Businesses, Resolving Financial Stress
The Insolvency & Bankruptcy Code, 2016ensures time-bound resolution of corporate and individual debts. At Corpiuris Nexus, we guide creditors and businesses through insolvency proceedings, restructuring, and revival with clarity and compliance.
Insolvency · Resolution · Revival · Liquidation IBC 2016 in Action
The Insolvency & Bankruptcy Code, 2016 empowers creditors and debtors with a structured process to resolve financial distress. Here are key real-world scenarios where IBC plays a crucial role.
Corporate Insolvency
When a company defaults on loans, creditors can initiate insolvency proceedings under IBC to resolve debts within a time-bound process.
Resolution Plans
A resolution applicant can propose a plan approved by the Committee of Creditors, ensuring revival of the distressed business.
Committee of Creditors
Financial creditors form a committee that makes key decisions, including approval of resolution plans by a 66% majority.
Liquidation Process
If no resolution plan succeeds, the company enters liquidation, and assets are sold to repay creditors as per IBC waterfall mechanism.
Explore Our IBC Services Discover how we help companies and individuals navigate Insolvency & Bankruptcy cases under IBC 2016.
Assistance in initiating corporate insolvency resolution process under IBC 2016 for stressed companies, including filing applications to NCLT and compliance with statutory requirements.
FAQs: Who can file a corporate insolvency application? Financial creditors, operational creditors, or the corporate debtor itself can file under IBC. What documents are required? Financial statements, loan documents, default notices, and company records are required.
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Guidance for individuals facing personal insolvency including voluntary surrender, repayment plans, and NCLT procedures for bankruptcy declaration.
FAQs: Can an individual declare bankruptcy voluntarily? Yes, under IBC 2016, an individual can file for personal insolvency through prescribed procedures. How long does the bankruptcy process take? Typically, the process may take 6-12 months depending on verification and resolution.
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Expert support in drafting and submitting resolution plans for approval by Committee of Creditors (CoC) and NCLT to revive the company or recover debts.
FAQs: Who prepares the resolution plan? The resolution applicant, with legal and financial experts, prepares the plan. Can the plan be modified by CoC? Yes, CoC can approve, suggest modifications, or reject the plan.
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Handling corporate or individual liquidation proceedings under IBC, including asset realization, creditor claims, and legal compliance.
FAQs: When is liquidation initiated? When the CoC fails to approve a resolution plan within the stipulated timeline. Who manages liquidation? The Liquidator appointed under IBC manages asset sales and distributions.
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Recovery of unpaid dues and enforcement of creditor rights under IBC framework through legal notices, NCLT proceedings, and settlement negotiations.
FAQs: Can creditors file independently? Yes, creditors can initiate proceedings under IBC to recover dues. Is court representation mandatory? Yes, representation before NCLT is essential for resolution or liquidation proceedings.
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End-to-end advisory services for companies and individuals to remain compliant with IBC regulations and avoid defaults or penalties.
FAQs: What are the key compliance requirements? Timely filings, maintaining financial statements, and adherence to creditor notices. Can non-compliance lead to penalties? Yes, non-compliance may result in NCLT action, fines, or insolvency proceedings.
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Insolvency & Bankruptcy FAQs
What is the Insolvency & Bankruptcy Code (IBC), 2016?
The IBC is a comprehensive law enacted to consolidate and amend laws relating to insolvency resolution of companies, partnership firms, and individuals in a time-bound manner. It aims to maximize the value of assets and promote entrepreneurship.
Who can initiate insolvency proceedings under IBC?
Insolvency proceedings can be initiated by creditors (financial or operational) or the corporate debtor itself when there is a default of Rs. 1 crore or more (threshold subject to government notifications).
How long does the insolvency resolution process take?
The corporate insolvency resolution process (CIRP) under the IBC is designed to be completed within 180 days, with a one-time extension of 90 days. In exceptional cases, the maximum period is 330 days, including litigation.
What happens if a resolution plan is not approved?
If no resolution plan is approved by the Committee of Creditors (CoC) within the prescribed timeline, the debtor undergoes liquidation, and its assets are sold to repay creditors.
Can individual insolvency be resolved under IBC?
Yes. The IBC also provides for insolvency resolution and bankruptcy for individuals and partnership firms, though its implementation for personal guarantors is being rolled out in phases.