Individual bankruptcy rules to take more time: All you need to know

The Insolvency and Bankruptcy Code is in force since 2016 for corporate entities

Rules for individual bankruptcy might take still longer to come. 

A key official involved in framing it, says: “While insolvency provisions for companies would not create a direct social impact, individual bankruptcy provisions will directly have social fallouts.”

The Insolvency and Bankruptcy Code (IBC) is in force since 2016 for corporate entities. The government has also issued a draft set of rules for cross-border insolvency. Norms for corporate guarantors, proprietorship and partnership firms are likely soon. Officials say bankruptcy is still seen in India in a derogatory sense and could affect families. Hence the caution in finalising rules for individual insolvency.