Insolvency and Bankruptcy Code

The Insolvency and Bankruptcy Code (IBC) is a law in India designed to streamline the process of resolving financial distress for individuals and businesses. It provides a structured framework for dealing with insolvency—when a person or company can't pay their debts. The IBC aims to balance the interests of creditors and debtors, allowing for timely resolution while maximizing asset value. It enables faster recovery of dues, promotes entrepreneurship, and seeks to prevent the economic consequences of prolonged financial failure. Overall, it helps restore financial health and encourages responsible lending and borrowing.