NEW DELHI: Who will benefit from the proposed scheme?
The individual insolvency regime proposed by the corporate affairs ministry and the Insolvency and Bankruptcy Board of India (IBBI), which oversees the operation of the bankruptcy code, seeks to offer a quick resolution for those micro, small and medium enterprises, mostly incorporated as partnerships or proprietorships, that become insolvent. The scheme also covers personal guarantors to corporate debtors. This is significant as often it is the individual proprietor who stands as personal guarantor for loans taken for the business and risks losing personal assets if the business fails.
Does the scheme offer small borrowers a debt write-off?
Small borrowers who do not have a dwelling,…
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