IBBI Introduces New Regulation for Personal Guarantors Failing to Submit Repayment Plans

The Insolvency and Bankruptcy Board of India (IBBI) has issued new regulations targeting personal guarantors who fail to submit repayment plans during insolvency proceedings. The updated framework introduces stricter timelines and consequences to ensure timely resolution and accountability. These regulations aim to prevent misuse of the legal process and improve creditor recovery rates. The move is expected to bring greater discipline and structure to the treatment of personal guarantors under the Insolvency and Bankruptcy Code (IBC), strengthening the overall insolvency resolution ecosystem in India.