Legal Question in Bankruptcy in India

Re: Inability of paying debt

You should organise your affairs and make a plan to clear off your debts in easy instalments.

You may negotiate with your creditors, explain your financial position; and may gain some waivers;

If you find that it is impossible to meet your liabilities for a long time, you may consider filing insolvency petition; this may help you in avoiding your creditors but then you will need to continuously/regularly inform the court of your income; the court may determine your maintenance level and allow you to keep sufficient money for your living and appropriate the remaining part of your income, if any, towards payment of your debts.

Re: Inability of paying debt

Discharge your liabilities, which is best solution to get rid from Creditor(s). Keep in mind that individual cannot prefer insolvency petition. If you are facing financial crises, it is apart, which can be handled in amicable manner. Also keep in mind that you should not conceal anything from your banker, it may cause serious harm to you. On the other part, banker, usually come to compromise if they feel that something can be realized with negotiation.