To Personal Guarantors

Personal Insolvency Process

The Provisions for personal insolvency of corporate guarantors were notified on 15.11.2019, along with rules and regulations. The Petition can be moved by any Financial Creditor or by the guarantor himself/herself to the NCLT. Moratorium composes an important part. Insolvency Professionals initiate the process, and Insolvency Advisor assists in the complete liquidation process.

Bankruptcy Process

NCLT may order Bankruptcy of Individuals or partnership firms in case repayment plan of personal guarantors is rejected or approved plan is not completely implemented. Bankruptcy Trustee is appointed by the NCLT. Public notice for inviting claims from creditors is issued, meeting of creditors is conducted, Trustee can investigate the affairs, realise the estate and distribute the estate of the bankrupt.