"Default by Debtor was a crime punishable with imprisonment or death" - forgotten preception in the Law of Bankruptcy, transformed the phrase by giving opportunity to a Bankrupt or Insolvent for revival - express your vi

The statement today is a forgotten perception. First Bankruptcy Law enacted in England in 1542 wherein debtor was looked upon as if an offender, and the Law was mainly for the benefit of creditors. The erstwhile law was providing equal distribution of debtor's assets among creditors yet not relieving the debtor from punishment. However, at present, UK Insolvency Act, 1986 is prevalent to deal with insolvencies of individuals and companies. Opportunity is given to revive the company to emulate the 'rescue' culture that characterised the Corporate Sector in U.S.A. Early bankruptcy laws in USA were draconian as were in England. Bankruptcy Abuse Prevention & Consumer Protection Act, 2005 in USA attempts to overhaul earlier Codes with specific reference to consumer protection, restoring personal responsibilities and integrity in the Bankruptcy system. In USA, Chapter 11 bankruptcy proceedings are considered as re-organisation/ resurrection process for corporates. Companies, while remaining operational, are permitted to restructure their debt obligations. In India also with promulgation of Insolvency and Bankruptcy Code, 2016, debtor is given revival opportunity before liquidation.