Insolvency and Bankruptcy Lawyer in Bangalore
Insolvency and bankruptcy law governs what happens when a company or person cannot pay its debts: the resolution or liquidation of distressed companies and the rights of creditors and debtors in that process. For Bengaluru's creditors, founders, and distressed businesses, the Insolvency and Bankruptcy Code is both a powerful recovery lever and a serious threat. Bisani Legal acts for creditors and corporate debtors across the insolvency process.
When you need an insolvency lawyer
- You are owed money by a company that cannot or will not pay, and want to use the insolvency route as leverage or recovery.
- Your company has received a demand or an insolvency petition and needs to respond fast.
- You are a financial or operational creditor deciding whether to trigger the resolution process.
- You need to file or defend a claim in an ongoing corporate insolvency.
- You are a promoter or director facing the consequences of insolvency, including personal guarantees.
- You are evaluating a distressed acquisition through the resolution process.
Statutes and rules that govern insolvency
| Statute | Key sections | What it governs |
|---|---|---|
| Insolvency and Bankruptcy Code, 2016 | Section 7 (financial creditor application); Section 9 (operational creditor application); provisions on the corporate insolvency resolution process and liquidation | The unified insolvency framework for companies, partnerships, and individuals, before the National Company Law Tribunal. |
| IBBI regulations | Provisions on the resolution process, claims, and resolution professionals | The detailed procedural rules made by the Insolvency and Bankruptcy Board of India. |
(Verification note for handoff: confirm the current minimum default threshold for triggering the process and any recent amendment to the Code before publication.)
How Bisani Legal works on insolvency matters
Insolvency is a timing and leverage game, and we play both. For our creditor clients, we assess early whether the insolvency route is the strongest lever, because the credible threat of a resolution process often produces payment from a solvent but reluctant debtor faster than any suit. Where it is right to proceed, we prepare the application precisely, since defects and disputed-debt defences sink many petitions at the threshold. For our corporate-debtor clients, we respond fast to demands and petitions, because the window to settle or contest is short and the consequences of admission are severe. We advise promoters and directors on their exposure, including personal guarantees, which often survive the company's resolution. For clients eyeing distressed assets, we navigate the resolution process to a clean acquisition. Throughout, we tell our clients honestly whether insolvency fits the situation, because it is a powerful tool that is wrong for routine debt collection.
Recent matter highlights
These scenarios are illustrative, written to show the format only, and must be confirmed against real anonymised matters or removed before publication.
- A creditor owed money by a solvent company used the credible threat of a resolution application to secure full settlement before admission.
- A corporate debtor that received an operational-creditor petition resisted it on a genuine pre-existing dispute, which is a recognised defence.
- A promoter facing a personal guarantee after the company's resolution received clear advice on the surviving exposure and options.
Frequently asked questions
Q1. What is the corporate insolvency resolution process?
A time-bound process under the Insolvency and Bankruptcy Code 2016 in which a defaulting company is either resolved through a resolution plan or sent to liquidation, supervised by the National Company Law Tribunal.
Q2. Who can trigger insolvency against a company?
A financial creditor, an operational creditor, or the corporate debtor itself, once the default crosses the prescribed threshold.
Q3. What is the difference between a financial and an operational creditor?
A financial creditor is owed a financial debt such as a loan; an operational creditor is owed for goods or services. Their applications follow different routes.
Q4. Can an operational creditor's petition be defended?
Yes. A genuine pre-existing dispute about the debt is a recognised ground to resist admission.
Q5. Does insolvency wipe out a personal guarantee?
Often not. Personal guarantees frequently survive the company's resolution, and guarantors can be pursued separately.
Q6. Is insolvency a good way to collect a small debt?
Usually not. It is a powerful tool with thresholds and consequences, better suited to genuine insolvency leverage than routine collection.
Q7. What happens to promoters in resolution?
Control passes to the process, and promoters may face restrictions, including limits on participating in the resolution of their own company.
Q8. How long does the process take?
The Code sets time limits for completion, though complex matters can extend. The threat alone often resolves matters faster.
Q9. Can I buy a company through insolvency?
Yes, by submitting a resolution plan in the process, which can be an efficient route to a distressed asset.
Q10. What is the priority of claims in liquidation?
The Code sets a waterfall determining the order in which claims are paid, which affects every creditor's recovery.
Related reading
- Debt Recovery Process in India
- Cheque Bounce under Section 138 of the Negotiable Instruments Act 1881
The bottom line
The Insolvency and Bankruptcy Code reshaped creditor power in India: a credible resolution application is often the fastest way to make a solvent debtor pay, and a serious threat to a company that cannot. The advantage goes to the party that understands the timing and the thresholds. Bisani Legal helps Bengaluru's creditors and companies use, and withstand, the insolvency process with the right move at the right moment.