Bankruptcy / insolvency case - how to file it ?
Siddique
(Querist) 16 May 2016
This query is : Resolved
Hello Dear Experts,
I used to run a small tailoring unit for the last few years with a staff of 5. Due to slump in business & recurring overheads, I ran into a debt of around 20 Lacs of Rupees over the years. Now my creditors are demanding back their money which at presently I am unable to repay them though I have all the intentions in the world to pay-back at the earliest.
As of now, I am completely bankrupt & struggling to even take-care of daily household expenses.
I would like to file a case of BankRuptcy so that I can establish to my creditors about the genuiness of my current financial position.
I solicit legal advice & consultations on how to go about filing a BankRuptcy case, fomalities involved, timelines, costs etc.
Any pointers would be highly appreciated.
Thanks & Regards,
PS : I am not sure whether this is the right category to post this query. If it's not then kindly move it to the right one. Sorry for inconvenience.
Guest
(Expert) 17 May 2016
I think you should give location , where are you located , if the matter is very urgent.
Reason I will tell you
1) On 11 May Parliament passed Insolvency and Bankruptcy Code . Till 17 May 6 am This code was not published in Official Gazette of India , And we believe in Gazette copy only no other source for reliability
2) Draft which was with parliament said It will come in force on such date when central govt. does notification in gazette
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Since new person and student I feel I want to concentrate on new code and not old one.
According to draft which I read it states all pending Insolvency matter will continue under respective old act .
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Now if you have more problem better move under old act and take steps with experienced Advocate.
If you have time then wait till Gazette notification of New Insolvency Code
Advantage and Disadvantage of old law (There are total 12 laws for various forms of organization ) and new 1 code till date I have not read any where.
So you wait for experienced guidance.
I expect online Gazette publication of new Code till today noon. And then I feel you need to wait till date Central Govt. do official notification date on which it will come into force
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I think procedure of new Code and series of old act will be different.
So if you have more problem better move with old act only for that you need good experienced advocate which are in this group.
Please post your location because most imp. thing .
Guest
(Expert) 17 May 2016
Location is required because there are two laws which will be repelled and they are related to two different location
Presidency Towns & Provincial areas .
So that too required to be determined which act as per location is applicable to you
Siddique
(Querist) 17 May 2016
Thanks for the reply though most of it is beyond my comprehension.
My location is Mumbai, Maharashtra.
Rajendra K Goyal
(Expert) 17 May 2016
Discuss with local lawyer and proceed as per his advice.
Siddique
(Querist) 09 June 2016
Any more inputs from the Experts please.
Would be highly appreciated.
Thanks.
Guest
(Expert) 09 June 2016
You need person practicing in
The Presidency Towns Insolvency Act 1909
New law is not notified yet
