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What changes would you recommend to the bankruptcy laws?

What changes would you recommend to the bankruptcy laws?

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Answer #1

Bankruptcy laws provide a mechanism for recovery of debts from debtors and also help in ensuring a proper resolution plan for the debtor to achieve going concern.

The following are the changes that i would like to suggest for the bankruptcy laws-

a) A Uniform Bankruptcy code that have a non-obstante clause. It should have the authority over and above all other bankruptcy laws, so that a common code of practice is followed.

b) A single adjudicating bench for hearing all the bankruptcy cases including a single appellant authority.

c) A scheduled insolvency process timeline, say for 180 days.

d) More stringent penal provisions in case the debtor violates the resolution plan. This law is required to ensure there is no abuse of immunity provided to the debtor.

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