Insolvency and Bankruptcy Code (IBC)

The Insolvency and Bankruptcy Code (IBC) is an Indian law enacted in 2016 to streamline the process of dealing with financial failure. It provides a structured mechanism for individuals and companies unable to pay their debts. Under the IBC, creditors can initiate proceedings to recover dues, and the law facilitates a time-bound resolution process. This may involve renegotiating debts or liquidating assets to pay creditors. The aim is to promote timely recovery while balancing the interests of debtors and creditors, ultimately enhancing the ease of doing business in India.