To Personal Guarantors

Personal Insolvency Process

Sections 94 to 187 of the Code, read with sec. 60 (1) and (2), w.r.t. insolvency and bankruptcy of personal insolvency of corporate guarantors have been notified vide notification dated 15.11.2019, along with rules and regulations for insolvency and bankruptcy process of Personal Guarantors. NCLT admits the petition, moratorium starts, Insolvency Professionals initiate the process, and Insolvency Advisor assists in the complete liquidation process.

Bankruptcy Process

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