Personal insolvency framework to be “beginning of a new learning”: M S Sahoo

Personal insolvency framework will be the “beginning of a new learning” and the next big thing in insolvency reforms, IBBI chief M S Sahoo has said. The framework under the Insolvency and Bankruptcy Code (IBC) for personal guarantors to corporate debtors has come into force from December 1.

Sahoo, Chairperson of the Insolvency and Bankruptcy Board of India (IBBI), emphasised that insolvency resolution of personal guarantors complements insolvency resolution of corporate debtors. “It (personal insolvency) is the next big thing in insolvency reforms. It will be beginning of a new learning,” he told PTI in a recent interview.
In the last three years, Sahoo said it was learning about corporate insolvency and in the next three years, “we will invest in learning personal insolvency”. The IBC came into effect from December 2016.