Introduction:The enactment of the Insolvency and Bankruptcy Code, 2016 (IBC) revolutionized India’s insolvency landscape by providing a comprehensive framework for resolving corporate insolvencies. Alongside this, the IBC also introduced significant changes concerning the liability of personal guarantors. This article aims to shed light on the liability of personal guarantors under the IBC and the implications it carries for them.The Concept of Personal Guarantors:A personal guarantor is an individual who provides a guarantee to secure the obligations of a borrower, typically a corporate entity, towards a lender. When the borrower defaults on its obligations, the personal guarantor becomes liable to repay the dues on behalf of the borro…
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