Insolvency and Bankruptcy Code, 2016
Last updated: April 2026 · Verified: April 2026
Educational information
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Provides a time-bound process for insolvency resolution.
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Applies to companies, LLPs, and individuals.
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Handled by National Company Law Tribunal (NCLT).
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Introduces creditors' control model.
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Aims to maximize asset value.
Level-Based Learning
Choose your depthSimple Explanation
This law applies when a company cannot repay its debts.
Why This Law Exists
To resolve financial failure quickly.
Real-Life Example
If a company defaults on loans, insolvency proceedings begin.
Real-World Impact
For Citizens
What this means for you
Faster resolution of failed companies.
For Businesses & Startups
Compliance & opportunities
Clear exit mechanism.
Strict default consequences.
Timeline / Change Tracker
IBC enacted
Modern insolvency law introduced.
