Who can apply for insolvency under IBC?
The Insolvency and Bankruptcy Code (IBC) provides a structured legal framework for resolving financial distress in a time-bound manner. A common question among businesses, lenders, and individuals is, "Who can apply for insolvency under IBC?" Understanding eligibility is essential before initiating proceedings, and guidance from an experienced IBC insolvency lawyer in Bangalore often helps stakeholders choose the correct legal path. Overview of Insolvency Under IBC The IBC allows insolvency proceedings to be initiated when a debtor is unable to repay its debts within the prescribed time. The objective is not only recovery but also resolution and revival of viable businesses wherever possible. Insolvency cases are handled by the National Company Law Tribunal (NCLT). Who Is Eligible to Apply for Insolvency? Under the IBC, insolvency applications can be filed by the following parties: Financial Creditors Banks, financial institutions, and NBFCs can apply for insolvency when a d...