In a crucial move, the government is preparing individual insolvency regulations under the Insolvency and Bankruptcy Code (IBC) that will provide for debt waiver up to `35,000 to the poorest of the poor, who have borrowed money from not just banks but also informal sources like village money lenders.
Once the regulations are in place, the poor who dont own houses, earn up to `60,000 a year and have assets up to `20,000 will be eligible to apply for such a relief, according to sources.
While, as per the current proposal, such applications will have to be endorsed by the adjudicating authority (the debt recovery tribunal), given the tiny size of loans and limited ability of debtors to go through any rigorous insolvency process, the governmen…
Read the full article at: https://www.financialexpress.com/money/individual-insolvency-relief-from-usury-for-the-poor-soon/1586132/