How To File A Petition For Bankruptcy In India

How to file a petition for Bankruptcy in India?

Answer (1)

Team Legistify

  • Sector-1, Noida

A petition for insolvency can be filed in a particular court only if you have resided in that place or have conducted business for a year. Bankruptcy is filed in an individual capacity without including the spouse, but first, you will have to hire a lawyer to help prepare the petition.This document should have a statement that you are unable to pay your debts, the place where you reside or conduct the business, details of the court order if you have been arrested, details of pecuniary claims against you, as well as the list and addresses of creditors.After the suit has been filed, the court shall fix a date for hearing. Here, you will be required to produce books of accounts, an inventory of your properties and the list of creditors. The court will examine your conduct, dealings and properties in the presence of the creditors. This gives the latter an opportunity to examine if you have made a full disclosure of your real estate holdings.If you have filed for insolvency in Mumbai, Chennai or Kolkata, the examination will take place only after you have been declared insolvent, while in all other areas, the examination takes place at the time of hearing. Once you are declared insolvent and the public examination concludes, you can file an application of discharge, which requests the removal of the status of 'insolvency'.

Answered on 28 Sep 2018

Was this answer helpful?

Yes   No

Didn't find the answer you are looking for?

Talk to experienced lawyer online and get your answered in minutes.