Individual Insolvency Code may soon be a reality
Failure to repay home loans might drag future defaulters to dedicated bankruptcy courts as New Delhi is seeking to put in place a broad framework on individual insolvency two years after it revamped such laws for stressed companies. Three sets of entities will fall under the individual insolvency code. They would include the personal guarantor to corporate debtors, proprietary firms and other individual borrowers, M S Sahoo, chairman of the Insolvency and Bankruptcy Board of India (IBBI), said Friday. “The work is progressing, but I cannot comment on any timelines,” said Sahoo. According to a market source, the insolvency rules to recover bad loans from individuals could only come after the impending general elections.
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