Act Number: 31

Act Name: The Insolvency and Bankruptcy Code, 2016.

Year: 2016

Enactment Date: 2016-05-28

Long Title: An Act to consolidate and amend the laws relating to reorganisation and insolvency resolution of corporate persons, partnership firms and individuals in a time bound manner for maximisation of value of assets of such persons, to promote entrepreneurship, availability of credit and balance the interests of all the stakeholders including alteration in the order of priority of payment of Government dues and to establish an Insolvency and Bankruptcy Board of India, and for matters connected therewith or incidental thereto.

Ministry: Ministry of Corporate Affairs

Department:

Section 80: Eligibility for making an application.
    (1) A debtor, who is unable to pay his debt and fulfils the conditions specified in sub-section (2), shall be entitled to make an application for a fresh start for discharge of his qualifying debt under this Chapter.
     (2) A debtor may apply, either personally or through a resolution professional, for a fresh start under this Chapter in respect of his qualifying debts to the Adjudicating Authority if —
         (a) the gross annual income of the debtor does not exceed sixty thousand rupees;
         (b) the aggregate value of the assets of the debtor does not exceed twenty thousand rupees;
         (c) the aggregate value of the qualifying debts does not exceed thirty-five thousand rupees;
         (d) he is not an undischarged bankrupt;
         (e) he does not own a dwelling unit, irrespective of whether it is encumbered or not;
         (f) a fresh start process, insolvency resolution process or bankruptcy process is not subsisting against him; and
         (g) no previous fresh start order under this Chapter has been made in relation to him in the preceding twelve months of the date of the application for fresh start.
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