A Brief Introduction to the Liability of Personal Guarantor Under IBC

Ancoraa Resolution01 Dec, 2022Finance

The guarantor is at risk when the corporate debtor cannot pay back the dues since banks will be lining up to initiate legal action against him under the Insolvency and Bankruptcy Code, 2016, making him a target like the corporate debtor. In the Indian context, it is well known that banks are the principal source of financing for any company, regardless of size, and that they have their eligibility criteria for issuing loans or credit facilities.