PEOPLE IN DEVELOPED ECONOMIES ARE VERY MUCH COMFORTABLE WITH BANKRUPTCY .
SOME FILE ON THEIR OWN TO GET RID OF PAYMENT OBLIGATIONS , WHILE IN OTHER CASES THE CREDITORS DRAG THE DEBTORS TO COURT AND DECLARE THEM AS BANKRUPT .
HOWEVER, THESE THINGS ARE VERY RARELY HEARD IN THE INDIAN MARKETS .
CAN SOMEONE SHARE DETAILS ABOUT BANKRUPTCY LAWS IN INDIA ?
India does have some laws — including one on Securitisation and Enforcement of Security — and other mechanisms, like Corporate Debt Restructuring or CDR, to address the problem of insolvency of firms. But the fact is some of these laws, such as the Sick Industrial Companies Act or SICA, have not worked because of inefficient enforcement and court delays.
Check the below link.
Government recently introduced in Parliament the ‘Insolvency and Bankruptcy Code, 2015’.The code provides for time limit of 180, days extendable by further 90 days, for completion of insolvency resolution process.India is currently ranked at 136 on this measure in the 189-country ranking. Resolving a bankruptcy case can take on an average over four years in India.
Government is very keen on implementing it soon, as to improve ease of doing business in India.
For more details on this through the below link.
i am talking about bankruptcy laws for individuals .
farmers are committing suicide just cause they are unable to repay their debts. .
can’t they simply declare bankruptcy and get rid of their diffeculties ?
If farmers default one time they are not going to get any funding from any bank for next time so obviously it is not a right step.
Sadly Individuals do take loans and keep IP and get away easily.
keep IP & get away easily ? kindly explain “IP” please