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

Ramesh, a daily-wage worker in Lucknow, wants to apply for a fresh start. His gross annual income is Rs 55,000, his assets total Rs 18,000 and his qualifying debts are Rs 30,000. He is not an undischarged bankrupt, owns no dwelling unit, has no insolvency or bankruptcy process pending, and has had no earlier fresh start order. Is he eligible under Section 80?

Ramesh is eligible. His income of Rs 55,000, assets of Rs 18,000 and qualifying debts of Rs 30,000 are all within the Section 80 ceilings of Rs 60,000, Rs 20,000 and Rs 35,000, and he meets every non-monetary condition.

  1. AYes, because he meets every monetary and non-monetary conditionCorrect
  2. BNo, because his income exceeds the permitted limit
  3. CNo, because his qualifying debts exceed the permitted limit
  4. DNo, because his assets exceed the permitted limit

Explanation

The limits are income up to Rs 60,000, assets up to Rs 20,000 and qualifying debts up to Rs 35,000. Ramesh's figures of 55,000, 18,000 and 30,000 are all within these limits. He also satisfies all the non-monetary conditions, so he is eligible.

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