Insolvency and Bankruptcy Code (IBC)

byPaytm Editorial TeamNovember 5, 2025

Meaning

India’s law for resolving financial distress.

Definition

The **Insolvency and Bankruptcy Code (IBC)** is India’s unified framework for insolvency and bankruptcy resolution of corporate persons, partnership firms, and individuals.

How It Works

It provides a time-bound process for creditors to recover dues, either by reviving the defaulting business or liquidating assets. The focus is on maximizing asset value.

Key Objectives

Consolidating existing laws, promoting entrepreneurship, balancing stakeholder interests, and ensuring efficient, time-bound resolution are its main goals.

Author

Paytm Editorial Team

The Paytm Editorial Team is a collaborative group of writers, editors, and industry experts. We're dedicated to bringing you the latest insights, news, and guides on digital payments, financial services, and the technology that's shaping India's economy. We offer easy-to-follow guides and insights to help you explore Paytm’s products, features, and services. Our goal is to provide clear, reliable, and helpful information to empower you on your financial journey.