This is how you can declare yourself bankrupt in India if you can’t repay loan

The government is making it easy for people to deal with bankruptcy. So unlike now, someone who fails to repay loan of a bank cannot be bogged down and made to pay up at once. Learning from various incidents, the government is now coming up with ways to tackle bankruptcy and making the individual pay in a structural way.

"There is huge social stigma attached to this. So, you cannot be punitive. People should be allowed to restructure their lives, " Sumant Batra, managing partner and head of the insolvency, secured transactions & corporate law practice at law firm Kesar Dass B & Associates told the ET.
Under current laws, banks would approach Debt Recovery Tribunals (DRTs) under the Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (Sarfaesi), which are aimed at recovering the dues.

While the Insolvency and Bankruptcy Code (IBC), enacted by Parliament last year, provides for individuals to be declared bankrupt, so far, action has been confined to the corporate sector and start-ups.