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UIf a person is in debt and no way able to pay it off, Do stuff like bankruptcy exist in this country? Weather that is secured loan where the amount isn’t recovering or unsecured loan or if a company goes kaput with debt?
My dad had acquired a lot of loans, some in my name and this was making me worried sick. What if our assets are not enough to cover the multiple debts? Then my friend suggested I could always file for personal bankruptcy and get it sorted by court. I don’t understand it and there isn’t any good resource I found on this in India.
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UIm not sure if there’s an option for filing bankruptcy in India, but either way, it has its pros and cons.
You would be able to get rid of your debt after paying whatever the court deems recoverable. You won’t hv to worry about the loan then.BUT!!! Ur account will end up getting marked and will have the lowest cibil score (not joking), any chances of getting a loan in future (education, home, car, personal, etc), it’ll all go away (better to confirm than taking my word).
So keep in mind whatever path u choose, choose wisely. Talk to someone who manages personal finance (someone old & experienced)
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UMy friend did mention that too, and said to use it as a last ditch effort. But I don’t see a lot of options now.
I did find this govt website for bankruptcy but doesn’t tell if its only for cooperation or not
[https://ibbi.gov.in/](https://ibbi.gov.in/) -
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FThere is no personal bankruptcy in India. In any case even if one existed it would be very very painful. You can’t just write off your debt. You will be put under an IRP who will decide what you can own and not own. Future wages/income will goto IRP who will give you an allowance until debts are paid off. Remember taxes and statutory dues cannot be written off.
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