Dept and insolvency related

Question

► I have around ₹1 crore in unsecured debt due to trading losses. This is about 10x my annual income, and I am unable to repay. I am currently facing harassment from recovery agents, including threats and pressure on my family. I want to explore legal options under the Insolvency and Bankruptcy Code for individuals. I need guidance on: 1. Whether I qualify for personal insolvency 2. How to file and which court (DRT) applies in my case 3. Whether filing can immediately stop recovery harassment 4. What documents are required 5. Estimated cost and timeline 6. Whether settlement before insolvency is a better option I am looking for a practical solution to protect my family and legally resolve my debts. After this I am mentally not ok and did took some loan from NBFC last month also which is also lost in trading Now there is no way to come out for me

Answer 1

Dear Client,

You may be able to use personal insolvency under IBC Part III if you are an individual debtor with unpaid debts and a real inability to pay, and the Debt Recovery Tribunal (DRT) is generally the forum for individual insolvency matters under the IBC. Once a proper insolvency application is admitted, an temporary ban on any instituting any suit for recovery, and pending legal actions on those debts are supposed to pause, but this is not an instant shield unless the case is actually filed and admitted. First, you can send a written complaint to the lender’s grievance officer stop the harassment and can also opt the RBI complaint route, because RBI rules prohibit intimidation or harassment by recovery agents. On top of that, you can also try a settlement talk if possible, because personal insolvency in India is still slow and technical, and the cost may be heavy compared with a negotiated one-time settlement.

I hope this helps and if you have any further issues do not hesitate to contact us.

Dept and insolvency related

1 Answer