Is the Bankruptcy Bill 2015 approved? Will it help me if I need to file for bankruptcy?
The Insolvency and Bankruptcy Bill 2015 was tabled in parliament but has now been referred for further scrutiny. The basis aim of the bill is to make it simpler for companies to wind up any failed businesses. As per the current laws you can file for bankruptcy only as an individual in your personal capacity. You cannot include any of your business establishments. It needs to be seem how the final draft of the Insolvency and Bankruptcy Bill 2015 pans out but basically it will allow people to file bankruptcy for business along with as an individual.
The Lok Sabha passed the Insolvency and Bankruptcy Bill, 2015. Wilful defaulters can announce their state of being insolvent or unable to pay financial dues. This law applies to both individuals and corporate firms. A person can apply for bankruptcy if:
• The gross annual income of the debtor is under Rs 60,000
• The total value of assets of the debtor is under Rs 20,000
• The total value of the qualifying debts does not exceed Rs 35,000
• No existing cases of bankruptcy is associated with the debtor
• No previous fresh start process has been issued for the debtor in the twelve months prior to the date of application.