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

Ramesh, a daily-wage earner in Jaipur, files a fresh start application. His application is admitted by the Adjudicating Authority on 10 March. When does the moratorium under the admission provisions commence, and for what period does it run unless the admission order is revoked?

The moratorium commences on the date the application is admitted, covering all debts, and it ends after 180 days beginning with that date unless the admission order is revoked earlier. Filing date triggers only the interim-moratorium, not this moratorium.

  1. AFrom the date of admission, ceasing at the end of 180 days beginning with that dateCorrect
  2. BFrom the date of filing, ceasing at the end of 180 days from filing
  3. CFrom the date of admission, ceasing at the end of 270 days
  4. DFrom the date of admission, continuing until the debtor is discharged from all debts

Explanation

On the date of admission the moratorium starts in respect of all debts. It ceases at the end of 180 days beginning with the date of admission unless the order is revoked. The filing date is relevant only to the interim-moratorium, which ends on admission or rejection.

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