28 June 2013
Filing for insolvency is simple enough... It can be done by either filing an insolvency suit with the local civil court and getting a certificate declaring oneself insolvent or by filing a petition with the district court....
The only criterion is that liabilities should be more than assets, and this position should not look reversible in the foreseeable future.
The next steps involve the court appointing an officer of the court to be in charge of the insolvency. This officer (who usually has no professional insolvency expertise) then proceeds to collect all the assets.
There is a complete lockdown of all assets till they are sold and the creditors are paid their dues....
CAclubindia
