The Insolvency regulator Insolvency and Bankruptcy Board of India (IBBI) aims to enhance the efficiency of the personal guarantors insolvency process with three significant measures.
These proposed measures, currently open for public comments until October 19, include mandatory creditors meetings for all personal guarantor insolvency cases, allowing a single resolution professional to handle both personal guarantor and corporate debtor insolvency, and mandating the RP to share recommendations with debtors and creditors.
Current status
As of June 2023, 2,039 applications for personal guarantor insolvency had been filed, involving 1,59,425 crore in debt. Only 890 cases had RPs appointed, and 253 were admitted.
In 2019, personal guaranto…
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