IBC · IBC · Chapter 11

Chapter 11 - Insolvency Resolution Process for Individuals and Firms

Chapter notes, video classes, MCQ practice tests and quick-revision one-liners for Insolvency and Bankruptcy Code 2016 — Insolvency and Bankruptcy Code 2016.

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Q

Which Part of IBC 2016 deals with insolvency resolution for individuals and partnership firms?

A

Part III of IBC 2016 deals with insolvency resolution and bankruptcy for individuals and partnership firms.

Q

What is the minimum debt threshold for initiating individual insolvency resolution under IBC 2016?

A

Not less than one thousand rupees (₹1,000).

Q

What is the maximum gross annual income allowed for a debtor to be eligible for the Fresh Start Process under IBC 2016?

A

The gross annual income of the debtor must not exceed ₹60,000 to be eligible for the Fresh Start Process under Part III of IBC 2016.

Q

Which authority acts as the Adjudicating Authority for individual insolvency under IBC 2016?

A

Debt Recovery Tribunal (DRT) with territorial jurisdiction.

Q

What is the maximum value of assets a debtor can hold to qualify for the Fresh Start Process?

A

A debtor's total assets must not exceed ₹20,000 in value to be eligible for the Fresh Start Process under Chapter II of Part III.

Q

Under IBC 2016, what notice period must a creditor give before filing under section 95?

A

14 days notice demanding payment of the debt.

Q

What is the maximum qualifying debt limit for a debtor to apply under the Fresh Start Process?

A

The qualifying debts of the debtor must not exceed ₹35,000 to be eligible for the Fresh Start Process under IBC 2016.

Q

What fraction of creditor votes in value is required to approve a repayment plan under section 111 of IBC 2016?

A

More than three-fourth (75%) in value of creditors present and voting.

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