Consult Best Bankruptcy / Insolvency Lawyers / Advocates in India

What is Insolvency and Bankruptcy?

Insolvency is essentially the state of being that prompts one to file for bankruptcy. An entity – a person, family, or company – becomes insolvent when it cannot pay its lenders back on time, whereas, Bankruptcy is a legal declaration of one’s inability to pay off debts. Many people often mix up the terms “insolvency” and “bankruptcy”, assuming them to mean the same thing, which is clearly not the case.

What are the indicators of Insolvency?

During the investigation, the liquidator will identify the signs of insolvency such as whether the company or an individual:

• Suffered recurrent losses every quarter/ financial year.
• Failed to pay taxes and other obligations required under the law.
• Issued dishonoured or post-dated cheques.
• Had-set off or arrangements for his loan.
• Exceeding his due date of payment to creditors.
• Availing multiple loans intending to stabilize the business, etc.

How can a lawyer help?

Filing for bankruptcy is a great way to get out from burdensome debt, and most people feel a tremendous sense of relief when their bankruptcy case is over. But understanding the process and filing for insolvency and bankruptcy can be intimidating.

That’s where an Insolvency and Bankruptcy lawyer comes in. Not only will you receive all the legal advice, but the lawyer can handle your case from start to finish while also guiding you with all the court process.