My personal and credit card loans total about 25 lakhs, with monthly payments reaching 1 lakh, twice my income. Banks aren’t willing to combine or extend my loan terms. Can I file for insolvency to restructure my debts?

Apni Law
Apni Law
Law Forum › Category: Banking / Finance › My personal and credit card loans total about 25 lakhs, with monthly payments reaching 1 lakh, twice my income. Banks aren’t willing to combine or extend my loan terms. Can I file for insolvency to restructure my debts?
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Apni Law Staff asked 2 months ago

My personal and credit card loans total about 25 lakhs, with monthly payments reaching 1 lakh, twice my income. Banks aren’t willing to combine or extend my loan terms. Can I file for insolvency to restructure my debts?

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Apni Law Staff answered 2 months ago

Yes, you may be eligible to file for insolvency under the Insolvency and Bankruptcy Code, 2016. Your situation with high debt and inability to repay suggests a potential “debtor in default” case. You should consult with a lawyer specializing in insolvency to assess your options and proceed accordingly.

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