Looking To Recover Your Bad Debt?
Nothing can be more agonizing than having to deal with bad debt, especially if a substantial amount is involved. Chasing debtors, trying for means and ways to get back your due, is no easy task; it hampers your economic, physical as well as mental health.
Taking Help Of Credible & Experienced!
If your rational and logical persuasions have fallen on deaf ears, it is advisable to contact a professional agency or firm to assist you.
Such firms and agencies are adept in dealing with such cases by guiding, advising, working on the feasibility of solutions, and bringing it to a logical conclusion.
Are You Up Against A Corporate Debtor?
If your corporate debtor falls in any of the given three categories, then you are in for some good news!
- a small company, as defined under clause (85) of section 2 of the Companies Act, 2013;
- or a Startup (other than the partnership firm), as defined in the notification dated 23rd May 2017 of the Ministry of Commerce and Industry;
- or an unlisted company with total assets, as reported in the financial statements of the immediately preceding financial year, not exceeding Rs.1 crore.
You can initiate a corporate insolvency process against your debtor under the Fast Track Corporate Insolvency Resolution Process (FTCIRP).
Avail This Opportunity At The Earliest!
The newly amended Insolvency and Bankruptcy Code 2016, has brought in its ambit Fast Track Corporate Insolvency Resolution Process and this provision has come into force from February 7, 2018.
As is quite evident from its name, this amendment has been adopted keeping in mind the problems of recovering bad debt at the earliest.
The Salient Features Of FTCIRP:
- The biggest draw is that the process of such cases shall be completed within a period of 90 days; as compared to 180 days that it normally takes
- The adjudicating authority may extend the period to 45 more days if he feels the need.
- A creditor may file an application for FTCIRP with the proof of default and initiate corporate insolvency resolution process.
- After the admittance of the application and the appointment of the interim resolution professional (IRP), the process shall begin.
- The resolution professional shall appoint registered valuers to assess the ‘fair value’ along with the ‘liquidation value’ of the corporate debtor.
- A resolution plan thus shall be made in a detailed manner and submitted to the committee of creditors for approval.
After the committee’s approval, the plan shall be submitted to the adjudicating authority within the stipulated period.
How to Take Advantage Of FTCIRP At the Earliest?
By going through the above points, it must be clear that it is the best option to recover your bad debt within a short time but to be successful in your endeavor, you need to appoint a legal firm.
Looking at the steps from the initiation of the process until the satisfactory solution, there is a great deal of legal work to be done. A legal firm, which has professionals with extensive experience in the matter, can be the best bet. They will expedite the entire process, follow it continuously, and keep you updated.
“FTCIRP presents the most promising solution to Creditors who have been suffering in the hands of Corporate Debtors.”
-Shweta Gupta, Founder and CEO, MUDS
MUDS is a consulting firm with years of experience in legal matters related to businesses of all kinds. The professionals here are highly qualified and adept in dealing with the legalities of all matters. Their deep insight and strategic approach have helped the firm successfully close many such cases. The company has pan India presence and caters to all clients, irrespective of their geographical placements.