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CS Professional · Insolvency and Bankruptcy - Law and Practice · Fresh Start Process

After submitting his fresh start application, Deepak discovers that he omitted a small bank loan from the list of debts given to the resolution professional. What is his obligation?

Deepak must inform the resolution professional as soon as reasonably possible about the material omission. The debtor's general duties include correcting errors in supplied information and reporting financial changes affecting the process; delaying or telling only creditors does not satisfy the obligation.

  1. AWait until the moratorium ends and then correct it
  2. BInform the resolution professional as soon as reasonably possible of the material error or omissionCorrect
  3. CInform only the creditors concerned
  4. DNo obligation, as the resolution professional must verify debts independently

Explanation

The general duties require the debtor to inform the resolution professional as soon as reasonably possible of any material error or omission in the information or documents supplied, and of any change in financial circumstances with an impact on the process. Waiting or informing only creditors does not meet this duty.

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