📝 One-liners · 127 cards
Abm 25c
What is Insolvency and Bankruptcy Code, 2016 (IBC)?
is the single biggest reform in India's debt-recovery framework.
What are Pre-Pack regime extended beyond MSMEs?
are now part of the law.
Insolvency — Meaning / Real-Life Example?
Meaning: Inability to pay — a person/company does not have enough cash flow or assets to repay debts as they fall due. It is a financial state, not a legal declaration.; Real-Life Example: Rahul runs a kirana shop, took a ₹5 lakh business loan, but monthly sales no longer cover EMIs.
Bankruptcy — Meaning / Real-Life Example?
Meaning: Legal declaration of insolvency — a tribunal/court formally declares the person/company unable to pay and orders the sale of assets to repay lenders.; Real-Life Example: Rahul's lenders move DRT, the tribunal declares him bankrupt, his shop and machinery are auctioned.
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