Wants to file for bankruptcy as don't have to sell the house

took personal loans for sole proprietorship business which failed. I literally have no money or assets except a house that i live in which also generates some rental income. the house is owned in the name of me and my wife jointly. my wife is earning a decent salary but is not willing to help monetarily anymore. we are still married. I would like to know if there is a way i can file for bankruptcy where i dont have to sell my house. my 23 year old son who is disabled also live with us. He is not earning anything yet and is dependent on us.

Answers (1)

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Filing for bankruptcy is not a very common practice in India, but it can be a good option for those who are heavily indebted and see no chances of repayment in near future. Although the Indian society is insensitive towards people who file for bankruptcy, it certainly opens up a window for starting afresh. It also helps you avoid continuous chasing by creditors.
If you are in a financial mess and your liabilities are too high as compared to your assets, filing for bankruptcy will act as a restart button. It will give an honest and burden-free start to your life as you will be relieved from all the debts. If you plan to file for bankruptcy, you'll need to consider these steps:

1. Prepare your balance sheet: Bankruptcy is a legally-acquired status and you will have to prove it in court. Court decisions are based on evidence and in this case evidence will be in the form of the assets and liabilities you hold.

2. Consult a legal advisor: Talk to an expert advisor on this matter. Your advisor will study your balance sheet and explore the possibility of winning the court case. The advisor will provide an insight on individual filing or joint filing in case you are married.

3. File a lawsuit for bankrupt status: Ask your lawyer to file a petition under the Provincial Insolvency Act and fight the case in court. Once you win the case, you will be deemed bankrupt and will be relieved from continuous hounding of creditors.

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