69th B.P.S.C. (Pre) 2023
Consider the following statements regarding insolvency and bankruptcy : 1. Bankruptcy refers to a financial state in which an individual or entity is unable to pay off their debts as they become due. 2. Insolvency refers to a legal process, where the assets of the debtor are liquidated or reorganized for the benefit of creditors. 3. Bankruptcy is a state whereas insolvency is the conclusion. 4. The Insolvency and Bankruptcy Board of India (IBBI) is the regulatory body responsible for overseeing insolvency and bankruptcy proceedings. ## Page 11 CLICK HERE - JOIN @APNAPDFS Which of the above statements is/are correct?
a1, 2 and 3
b2, 3 and 4
cOnly 4✓ Correct
dOnly 1 and 2
Explanation
Insolvency means the financial condition in which a person or an institution is unable to pay its debts when they become due. Bankruptcy refers to a legal process in which the debtor’s assets are liquidated or reorganized for the benefit of creditors. Insolvency denotes a stage/condition, whereas bankruptcy is the conclusion. The Insolvency and Bankruptcy Board of India (IBBI) is the regulatory body responsible for overseeing insolvency and bankruptcy proceedings.
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