How does Insolvency and Bankruptcy code 2016 help creditors?
Before knowing about Insolvency and Bankruptcy code 2016, let us know what is bankruptcy and Insolvency. Bankruptcy is a state of an individual or business where the debtor is unable to pay the loan or debt amount to the creditor. This state of bankruptcy is usually initiated or declared by the debtor when under losses and the court approves or imposes the bankruptcy order. Insolvency is a state where the debtor whether it is an individual or business is unable to pay the loan on time.
The financial institutions or individuals which provide loans to the business face a lot of trouble when the debtors are not able to repay the loan amount o time. The loan amount becomes struck and stagnant when the business in which the loan amount is invested is discontinued. The creditor is in trouble even when the business is continued but without any considerable profits where or zero profit where the debtor is not able to repay the loan amount.
To solve the problems faced by the creditors and safeguard them, the Parliament of India has approved the Bankruptcy and Insolvency code in 2016. This act is helpful to the companies, group of individuals or individuals that provide loans to the individual or business.
The Insolvency and Bankruptcy code 2016 overwrites all other laws related to companies, businesses or individuals. This code of law established Insolvency and Bankruptcy Board of India and Insolvency professional agencies, insolvency professional agents, and utilities. The insolvency professional agencies help in the process of insolvency, take claim of the management of the business, helps the creditors to get informed about the liquidation of the business or company.
The objectives of the Insolvency and Bankruptcy code 2016 is to create new entrepreneurs encourage the flow of money, to quicken the process of resolution and liquidation. Before this law, the resolution of insolvency or liquidation was not time bound which made the life of creditors hard.
The establishment of Insolvency professional agencies and Insolvency professional agents is a great help to the creditors whether they are individuals or organizations. The reason being, the professional insolvency agencies, and professionals make the insolvency and Bankruptcy code work properly.
At Siddhi Consulting, we have expert insolvency professional agents who can make the process of resolution or liquidation comfortable, timely and easy. The insolvency professionals are licensed who are skilled in navigating the process of resolution, liquidation, bankruptcy etc.
The insolvency professionals in our organization are registered with Insolvency professional agency and Insolvency and Bankruptcy Board of India. Our expert team is capable of managing the concerns of debtors, preparing a resolution plan and submitting it to the adjudicating authority. Our team of insolvency professionals can conduct the liquidation process in case the resolution plan is rejected by the authority.
The process of resolution, liquidation or bankruptcy needs a procedural approach and has to be done by professionals to get proper results. Our team of professional insolvency agents can take of all the needs related to insolvency, bankruptcy, liquidation etc. and can ensure timely results.
Please free to contact at firstname.lastname@example.org for inquiries and further queries.