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Insolvency bankrupt due to multiple loans and not able to pay now


31-Mar-2026 (In Recovery Law)
I have around ₹1 crore in unsecured debt due to trading losses. This is about 10x my annual income, and I am unable to repay. I am currently facing harassment from recovery agents, including threats and pressure on my family. I want to explore legal options under the Insolvency and Bankruptcy Code for individuals. I need guidance on: 1. Whether I qualify for personal insolvency 2. How to file and which court (DRT) applies in my case 3. Whether filing can immediately stop recovery harassment
Answers (2)

Answer #1
856 votes
The correct remedy will depend on what kind of notices and summons you have received, nature of loan, stage of recovery etc. Please contact for further consultation so that we can guide you regarding the correct steps.
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Advocate Akanksha Choudhary

Adv. Akanksha Choudhary

LawRato Bangalore / Bengaluru | 5+ Answers
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Answer #2
994 votes
Individuals facing default on debts (excluding specific types like farm debts) can file under Section 94 if unable to repay. Bengaluru, this is the DRT Bengaluru bench. Yes, filing under Section 94 triggers an immediate interim moratorium under Section 96, staying all recovery actions, legal proceedings, and creditor enforcement on your debts/assets until admission/rejection.
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Advocate Babita

Adv. Babita

LawRatoBangalore / Bengaluru | 200+ Answers
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