IBC of individual not able to pay debts

Hello,

The Insolvency and Bankruptcy Code (IBC) in India provides a mechanism for resolving insolvency and bankruptcy cases for individuals and corporate entities.

If a debt has already been the subject of an order passed by a court, such as a summons for judgment, it is possible for that debt to be included in the insolvency resolution process under the IBC. However, there are certain conditions and procedures that need to be followed:

Eligibility Criteria: The debt must meet the eligibility criteria as defined under the IBC. The IBC applies to corporate debtors, partnership firms, and individuals, subject to certain thresholds. geometry dash lite
Amount Threshold: There is a minimum threshold amount for initiating insolvency proceedings under the IBC. As of my last update in September 2021, the minimum amount for initiating insolvency proceedings against a corporate debtor was ₹1 lakh.
Procedures: The creditor or debtor can initiate insolvency proceedings under the IBC by filing an application with the National Company Law Tribunal (NCLT) or the Debt Recovery Tribunal (DRT), depending on the type of debtor.
Verification: The NCLT or DRT will assess the application and determine whether the debt qualifies for insolvency resolution under the IBC.