The process seeks to cover debtors with annual income less than Rs 60,000, debt less than Rs 35,000, assets less than Rs 20,000 with no dwelling unit. The process can only be initiated by the debtor before the debt recovery tribunal through a resolution professional. If the tribunal passes an order of discharge of debt, the creditor will have to write it off, subject to an entry in the credit history of the individual.
The target group is the extremely vulnerable population that has no hope in hell of repaying the debt in some sense, its like a debt waiver, Renuka Sane, associate professor at the National Institute of Public Finance and Policy, told BloombergQuint. Sane is party of the IBBI working group on personal insolvency.
Read the full article at: https://www.bloombergquint.com/law-and-policy/ibc-how-will-the-fresh-start-route-for-small-debtors-work