You can file petition for declaration that you are insolvent 

2) An insolvency petition is filed at a district court having jurisdiction in which the debtor resides or carries on business. 

3) your property vests in official assignee 

4) you have to submit list of your creditors 

5) official assignee would pass orders for your adjudication as insolvent 

You can engage an advocate who would file a petition before the NCLT to declare you an an insolvent so as to distribute your available assets among the financial and corporate creditors. 

You have to file a person under Section 7 of PROVINCIAL INSOLVENCY ACT, 1920 in the Court of Small Causes, Bangalore. Your biggest advantage is you do not own any property. The petition is to be filed giving list of all your creditors and the amount due to them and also list of your debtor and the amount due to you from your creditors. You have also to make a declaration that you do not own any property.  Court will issue notices to creditors and debtors and try to recover from your debtors and pay to the creditors. If there is short in your credits court will declare you insolvent and after that none of your creditors can seek their dues from you.  The implication is, you will not be allowed to open/operate any bank account for one year, pan card will not be seized, after one year you will be entitled to all things as solvent. Leaving earth is not solution. Only those riding horse fall down and brave among them agar ride the horse. People owing thousands of crores are enjoying life not aboard but even in India. Insolvency is accepted in business and no stigma is attached to it, that is why people start limited companies.

Hi, You can file a petition before the Court to declare as Insolvent. But once you declared as a insolvent, I don't think, bank will advance any money.

Dear Sir/Ma'am,

Even though a heavy loss incurred to you, the law there to provide adequate justice to everyone. Here are some of the legal provisions and procedures which you can go through-

The Indian Parliament passed the Insolvency and Bankruptcy Code , 2016 (IBC). The Government had notified only the part on corporate insolvency. In 2019 Personal Insolvency provisions were notified.

Personal Insolvency, if defined in simple words, would mean when a person is unable to honour a debt agreement i.e. when his debts exceed his income. As of now, Personal Insolvency is still at its initial stage in India and it requires time to be fully operational. In the latest amendment of 2019 in IBC, a Personal Guarantor is allowed to be sued for recovery of dues by creditors in the NCLT. A Personal Guarantor can now also move a petition for having himself declared insolvent. As per this amendment, the law seeks that both secured and unsecured debt of the guarantor would be covered under the head Personal Insolvency.

In terms of the amendments in Personal Insolvency, the IBC now provides process for dealing with default. The “Fresh Start Process” provides for post clearance of dues with creditors. The “Insolvency Resolution Process” provides for a mechanism for creditors and debtors to renegotiate a repayment plan and “Bankruptcy” provides for liquidation of debtor’s assets but this can only be set into motion when resolution process fails. Earlier the Law had designated “Debt Recovery Tribunals“ (DRT) as the adjudicating body having the wider presence than the “National Company law Tribunal” (NCLT) which earlier, only adjudicated for Corporate Insolvency but the 2019 Amendment in IBC, has designated NCLT as the adjudicating body granting relief to both creditors and personal guarantors for fast and easy disposal.

Who can file for insolvency

An individual can file an insolvency petition if he/she is unable to pay his/her debts on fulfilment of any of the following three conditions:

• Debts amount to more than Rs.500
• The individual is under arrest or imprisonment in the execution of a money decree
• There is a subsisting order of attachment against his/her property in execution of such decree

When can the Creditor file for Insolvency Petition?

A creditor can file an insolvency petition under the following conditions:

• The total amount of debt due to the creditor is more than Rs.500
• The debt is already due or at a future date
• Insolvency petition has been filed within three months of the commission of the act of insolvency

Where to file the Insolvency Petition?

An insolvency petition is filed at a district court having jurisdiction in which the debtor resides or carries on business. If the debtor has already been arrested or imprisoned, then the insolvency petition can be filed where he/she is in custody. Once an insolvency petition is filed, the Court can appoint an interim receiver after the presentation of the insolvency petition or before an order is made. On making an order of adjudication, the property of an insolvent individual would vest with the official assignee or the receiver and becomes divisible among the creditors.

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• or visit my account and check the details to contact me.

When a person is unable to pay his debts, the insolvency laws in India provide him with the relief from the harassment of his creditors whose claim he is unable to meet. The insolvency laws also provide machinery for the satisfaction of all the creditors.

Thus if a person is unable to pay his debts an insolvency petition may be presented before the court either by the creditor or by the debtor.

The presentation of the petition by the debtor is deemed as an act of insolvency and the court may make an order of adjudication. The order of discharge by the court releases the bankrupt from all current and provable debts. On being declared insolvent, the court appoints official assignee or receiver, who takes charge of the property of the insolvent, which is then divided among creditors to pay the debts.

• Section 102 of the Presidency Towns Act punishes an undischarged insolvent for obtaining credit to the extent of fifty rupees or upwards from any person without informing such person that he is an undischarged insolvent.
• Section 103 of the Presidency Towns Act and section 69 of the Provincial Insolvency Act, 1920 punish a debtor who fraudulently with the intent to conceal the state of his affairs or to defeat the objects of the act; destroys, withholds, replaces or alters the contents of the books, papers etc. which are subject to investigation under the acts.
• The above sections also punish a debtor who fraudulently with intent to diminish the sum to be divided amongst his creditors or of giving an undue preference to any of the said creditors discharges or conceals any debt due to or from him or charges, mortgages or conceals any part of his property of any kind.
• Section 69 of the Provincial Insolvency Act, 1920 also punishes the debtor who fails to perform the duties imposed on him by section 22 or to deliver up possession of any part of his property which is divisible among his creditors under the Act and which is for the time being in his possession under his control to the Court or to any person authorized by the Court to take possession of it.

- As per law, an individual can file an insolvency petition if he/she is unable to pay his/her debts and needs protection from creditors. 

- Hence, you can file an Insolvency petition before the court under the Insolvency Act, after submitting the details of creditors.  

- However, during the trial , you should not open an account , and run the business profitably. 

You can declare insolvency and get rid of the debt