Analysis of insolvency laws of India, Australia, Canada USA, and UK

K. Manikyamba (), Rupendra Prakash Yadav and Aarati Tyagi
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K. Manikyamba: Sharda University
Rupendra Prakash Yadav: Sharda University
Aarati Tyagi: Reva University

SN Business & Economics, 2022, vol. 2, issue 10, 1-12

Abstract: Abstract The wellbeing of a financial sector depends on effective insolvency law which enables them to restrain the deterioration of the value of assets by enabling them to claim their dues through liquidation or reorganization process. When a corporate or individual is in crisis, the effective insolvency law provides a feasible resolution for bot debtor or creditor. An effective insolvency law provides for an established legal framework through judicial intervention or out-of-court settlement. The financial health of a developing country depends upon financial sectors as well as the allocation of financial resources. The wellbeing of a financial sector like banks is a matter of policy concern for a developing country like India. The World Bank report 2019, on doing business ranked India 108th of 190 countries in resolving insolvency which has improved from 16th in 2017. It is also noted by World Bank that the insolvency procedure takes 4 to 3 years and costs about 9% of the sale proceeds of the debtor’s estate. The meter of the insolvency index has increased from 6 in 2017 to 8.5 in 2018. The major focus of the paper is to analyse legal trends in various developed countries having effective debt recovery mechanism.

Keywords: Debt recovery mechanism; Developed countries; Insolvency; Bankruptcy; Liquidation; Reorganization (search for similar items in EconPapers)
Date: 2022
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DOI: 10.1007/s43546-022-00323-1

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