The terms ‘bankruptcy’ and ‘insolvency’ are often used interchangeably but they have different meanings.

Insolvency is a financial state when an individual or company can no longer meet their financial obligations to lenders as debts become due whereas Bankruptcy is a legal proceeding initiated when a person or business declares that he/she or it can no longer pay back his/her or its debts to creditors. The Insolvency and Bankruptcy Code 2016 (IBC) regulates insolvency and reorganization of private companies, partnership firms and individuals in a timely manner. It undertakes to maximize the value of the assets of the debtors and also tries to balance interest of all the shareholders. The Code guarantees to achieve far-reaching reforms with a push on creditor driven insolvency resolution. It aims at prior identification of financial failure and increasing the asset value of insolvent firms/companies.

The IBC has established the Insolvency and Bankruptcy Board of India (IBBI) as the regulating authority. Additionally, the National Companies Law Tribunal (NCLT) has been made the appropriate authority for corporate insolvency resolution and liquidation proceedings.

We are one of the top most law firms to provide our clients with comprehensive consultancy service in field of Insolvency and Bankruptcy law. Our services in this sector include Insurance claim recovery, Drafting and finalizing loan documentation, external commercial borrowing, Informal arrangement with creditors, Debt agreement with creditors, Corporate recovery of assets Annulment of bankruptcy, Claims against directors, Liquidation of company, restructuring, actual liquidation and winding up of businesses, advising clients at pre-insolvency stage as well as during insolvency resolution proceedings, acquisitions, drafting resolution plans, and representing clients before the National Company Law Tribunal etc.