Economic development needs an evolved legal system that can support and complement it. The need for refined corporate case resolution with the rise in complexity of investments and global market integration was one of the intentions of a consolidated comprehensive law on corporate insolvencies and bankruptcies in India. This took the shape of the Insolvency and Bankruptcy Code, 2016 (IBC). Now, it is critical to note that the IBC was championed as a legislation which would also look at the debt market as a separate investment strategy option and enable the Indian economy to overcome the era of writing of debt as the only way to manage a situation where a debtor is unable to pay or a company malfunctions.Given the complexity of the economic makeup with different types of the investment engines that have become available, investment through debt instruments and intercompany arrangements with external commercial borrowings have also found their place in the market. The IBC, on its own has … [Read more...] about Writing Of Debt And Debt Restructuring: Another Conundrum With The Ordinance Amendment To The Insolvency Bankruptcy Code
Bad debt write off
Share Tweet Plus One Pin It Email Print By: P.V Dinesh December 19, 2018 3:24 pm Change Font Size Recently, on 26th November 2018, the Corporate Affairs Secretary Mr.Injeti Srinivas informed the country that out of the 9,000 cases filed before the National Company Law Tribunal (NCLT), 4,400 cases have been disposed of, leading to a recovery of approximately Rs.71,000 crores. The total bad debts assessed so far that is owed to the public sector banks in India amounts to Ten Lakh Crores of Rupees. As per the report published by the Insolvency and Bankruptcy Board of India(“IBBI”),in respect of the 32 companies which are stated to have been resolved in insolvency resolution process under the Insolvency and Bankruptcy Code, 2016 (“IBC”), there is a recovery of Rs.49,783 crores which amounts to 56 % recovery. The balance, i.e., Rs.39,619 crores is written off, which would otherwise have been payable by these 32 companies. In the case of the 136 … [Read more...] about Insolvency Proceedings – Safe Passage for Defaulters?
So whether they are actively recruiting these low-income students for reasons of open-the-door altruism or keep-the-lights-on capitalism — or, more likely, some combination of the two — there has been a huge, largely hidden byproduct of this dramatic increase in access: These students are often being loaded up with staggering debt that is completely out of whack with the earnings boost they’ll likely get from a degree at a nonselective or less selective college. Already, average student loan debt is higher in Boston than any other metro area in the country, 44 percent above the national average, according to Credit Karma. But more troubling, many of these low-income students — and, at some colleges, most of them — are not graduating. That means these non-completers are leaving campus saddled with lots of debt but none of the salary gains that traditionally come with a bachelor’s degree. RELATED STORY: Poor at an Ivy League school Dean College … [Read more...] about The college debt crisis is even worse than you think
His pro bono client’s life had been seized up in such fear that she pawned her wedding ring to feed the maw of a default judgment against her in Los Angeles County Superior Court, obtained by one of the nation’s biggest debt buyers.It was too late to undo the judgment, but Benshoof sued the debt buyer, alleging that its repeated phone calls to the woman were harassing and illegal. The company turned over phone recordings in discovery that showed the calls weren’t as heated as the woman thought.“I still think they crossed a line,” says Benshoof, a partner and big-firm commercial litigator in the Los Angeles office of Alston & Bird.The debt buyer settled, discharging the debt of $5,000, which included interest on the original $3,500 loan, and gave back $2,600 the woman had managed to pay on the judgment.But Benshoof remained curious. His client still insisted she’d never taken out a loan, though she once might have co-signed one. The bank that … [Read more...] about Debt-buying industry and lax court review are burying defendants in defaults
Often, the living have no obligation to pay the debts of dead relatives. But a growing legion of sympathetic debt collectors is seeking to persuade them to do so.With the help of today’s database technology, it’s relatively easy to determine when an estate is opened in any of the nation’s 3,000 probate courts, allowing bill collectors to file timely claims when estates have the money to pay them. But when that’s not an option, what one collection agency calls “empathic active listening” comes into play, reports the New York Times.“I am out of work now, to be honest with you, and money is very tight for us,” one man said recently, when told over the phone of a $280 credit card bill owed by his late mother-in-law. Nonetheless, he promised to $15 monthly on the debt, the newspaper reports.Strong-arm tactics aren’t exactly unheard of in debt collection matters, MarketWatch columnist Chuck Jaffe wrote a year ago.And, in a follow-up … [Read more...] about Debt Collectors Find the Dead Can Be More Lucrative Than the Living