Section 88 of The Insolvency and Bankruptcy Code, 2016.
The debtor shall—
- (a)make available to the resolution professional all information relating to his affairs, attend meetings and comply with the requests of the resolution professional in relation to the fresh start process.
- (b)inform the resolution professional as soon as reasonably possible of—
- (i)any material error or omission in relation to the information or document supplied to the resolution professional; or
- (ii)any change in financial circumstances after the date of application, where such change has an impact on the fresh start process.
Summary
- Requires the debtor, which means the person who owes money, to make available to the resolution professional, who is the licensed insolvency specialist, all information about their financial affairs.
- Forces the debtor to attend all necessary meetings and comply with any requests made by the resolution professional during the fresh start process, which is a debt relief route for low-income individuals.
- Obligates the debtor to quickly report any major error or omission found in the documents they previously supplied to the resolution professional.
- Commands the debtor to immediately inform the resolution professional about any change in their financial circumstances after the application date that could affect the fresh start process.
Practical examples
FAQ
1. What are the general duties of a debtor under Section 88 of The Insolvency and Bankruptcy Code, 2016?
Under Section 88 of the Insolvency and Bankruptcy Code, 2016, a debtor must provide all financial information, attend meetings, follow the resolution professional's requests, and report any errors in their paperwork or changes in their financial situation.
2. Does a debtor have to report an increase in income under Section 88 of the 2016 Bankruptcy Code?
Yes, under Section 88 of the 2016 Bankruptcy Code, a debtor must inform the resolution professional of any change in their financial circumstances if it impacts their ongoing fresh start process.
3. What happens if a debtor discovers a mistake in their filed documents under Section 88 of India's insolvency law?
Under Section 88 of India's insolvency law, the debtor must inform the resolution professional as soon as reasonably possible about any material error or omission in the information or documents they supplied.
Test yourself
Q1.Under Section 88 of The Insolvency and Bankruptcy Code, 2016, when must a debtor inform the resolution professional of a material error in their supplied information?
Q2.Under Section 88 of The Insolvency and Bankruptcy Code, 2016, which of the following is a general duty of the debtor?
Q3.Under Section 88 of The Insolvency and Bankruptcy Code, 2016, what must a debtor do if their financial circumstances change after applying for a fresh start?
Q4.Under Section 88 of The Insolvency and Bankruptcy Code, 2016, how does a debtor's duty to provide information connect to Section 90, which allows the resolution professional to seek compliance directions from the court?