KMG Legal Team of top and finest legal consultant for insolvency and bankruptcy code our firm specifically undertakes the following categories of work pertaining to the domain area of Insolvency & Bankruptcy :
• Application for initiation of Corporate Insolvency Resolution Process by Financial or Operational Creditors.
• Advising the lenders regarding an on-going Corporate Insolvency Resolution Process.
• Advising and assisting Resolution Professionals/Liquidators regarding on-going Corporate Insolvency Resolution Process / Liquidation.
• Advising directors/ex-members of a Corporate Debtor undergoing Corporate Insolvency Resolution Process.
• Litigation services in matters pertaining to IBC before the appropriate forums.
Insolvency: A financial condition where an individual or entity is unable to pay its debts as they become due.
Bankruptcy: A legal proceeding where an insolvent debtor's assets are distributed to creditors and the debtor is relieved from further financial obligations.
Key Concepts:
Creditor: An individual or entity to whom a debt is owed.
Debtor: An individual or entity that owes a debt.
Asset: Anything of value that can be converted into cash to pay debts.
Liability: A debt or obligation.
Bankruptcy Court: A court that handles bankruptcy proceedings.
Types of Bankruptcy:
Bankruptcy: Liquidation bankruptcy where the debtor's non-exempt assets are sold and the proceeds distributed to creditors.
Bankruptcy: Reorganization bankruptcy where the debtor proposes a plan to restructure its debts and continue operating.
Bankruptcy: Reorganization bankruptcy for family farmers and fishermen.
Bankruptcy: Reorganization bankruptcy for individuals with regular income.
Eligibility:
Individuals, businesses, and other entities can file for bankruptcy.
There are income limits for Chapter 13 bankruptcy.
Process:
Filing a Petition: The debtor files a petition with the bankruptcy court.
Automatic Stay: Upon filing, an automatic stay goes into effect, prohibiting creditors from collecting debts.
Meeting of Creditors: The debtor attends a meeting with creditors to discuss their financial situation and assets.
Plan Confirmation: bankruptcies, the debtor proposes a plan to pay off their debts. The plan must be approved by the creditors and the court.
Discharge of Debts: If the plan is approved, the debtor is discharged from their debts.
Effects of Bankruptcy:
Discharge of Debts: Most debts are discharged, including credit card bills, medical bills, and personal loans.
Impact on Credit Score: Bankruptcy can negatively impact a credit score.
Employment: Bankruptcy may affect certain employment opportunities, such as those requiring a security clearance.
Future Credit: Lenders may be less likely to extend credit to individuals who have filed for bankruptcy.
Protections for Debtors:
Exemptions: Debtors are allowed to protect certain assets from liquidation, such as a primary residence, personal property, and retirement accounts.
Automatic Stay: The automatic stay prevents creditors from harassing or attempting to collect debts.
Discharge of Debts: Bankruptcy provides a fresh start by discharging most debts.