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Money recovery from a person who is delaying


06-Sep-2025 (In Recovery Law)
Hello, I want to know the legal steps to recover money given to a person who is saying he is bankrupt now. What actions can I take to recover my money. Thank you
Answers (5)

Answer #1
768 votes
You can recover your money through a civil suit for recovery before the appropriate court. If you have written proof of the loan/transaction (agreement, promissory note, bank transfer, cheque, messages, etc.), the court can order repayment with interest. If the person is genuinely bankrupt/insolvent, you may file a claim in the insolvency proceedings before Debt Recovery Tribunal (DRT) under IBC as a creditor. In case he issued a cheque that bounced, you can also take action under Section 138 NI Act. The exact strategy will depend on the amount involved and the evidence you hold. I can guide you step-by-step after reviewing your documents.
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Advocate Adarsh Kumar

Adv. Adarsh Kumar

LawRato Delhi | 400+ Answers
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Answer #2
820 votes
If a person is claiming bankruptcy after taking money from you, the first step is to verify whether they have actually filed for insolvency under the Insolvency & Bankruptcy Code (IBC) or are merely making excuses. If insolvency proceedings are pending, you can file your claim before the Insolvency Resolution Professional to secure your rights as a creditor. If no such proceedings are initiated, you have remedies to recover your money through a civil recovery suit, money recovery proceedings , or by initiating a criminal complaint depending on the facts. The correct remedy depends on the documents/transactions you have, so a detailed consultation will be required to decide the best course of action. For further assistance you may please contact me.
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Advocate Drishti Mittal

Adv. Drishti Mittal

LawRatoDelhi | 25+ Answers
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Answer #3
881 votes
Hi there, at first send a notice to the person and wait for his reply to it. Post that you have to file a suit in the court having jurisdiction. If he really is bankrupt then the court will attach his/her property to recover the money. Also, make sure the time since money is due is within limitation (3yrs) even if not we have a remedy for it. It's advisable to contact me and provide more details to assist you better.
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Advocate Ishan Parashar

Adv. Ishan Parashar

LawRatoDelhi | 200+ Answers
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Answer #4
1000 votes
Hello by saying that a person is bankrupt does not mean that you cannot initiate a legal action to recover your money. please inquire, is there any insolvency petition filed against him. please inquire, if the petition filed what is the status. yes there are ways to initiate legal action to recover the respective amount
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Advocate Rahul Kumar Singh

Adv. Rahul Kumar Singh

LawRatoDelhi | 50+ Answers
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Answer #5
702 votes
First of all rather than going legally you should serve him/her a legal notice and in that notice you can write that either pay my money or face legal action which will be at your own risk. After that if he/she fails to give you a satisfactory reply then you can anytime file a recovery suit in the court to claim your money back along with compensations.
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Advocate Jitender Singh

Adv. Jitender Singh

LawRatoDelhi | 1000+ Answers
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