As per a news report by a leading business daily, the Insolvency Law Committee under the premises of personal bankruptcy framework may announce debt waivers for low-income category who are not able to repay loans up to Rs. 60,000 similar to farmers as part of a debt relief scheme. Further, the report says that such a recommendation to the government may be made after Lok Sabha 2019 elections end.
In the current framework, only corporate debtors confront IBC action but the individuals and partnerships are yet to be activated for insolvency resolution and bankruptcy as part of IBC. As per the IBC code 2016, part 3 of IBC deals with "fresh start, insolvency and bankruptcy of individuals and partnership firms where the amount of the default is not less than Rs 1000". And herein the government may come into play and may decide the minimum amount of default of higher value which should not exceed Rs. 1 lakh.
It will be in a bid to restart over again if due to some reason these small income group is not able to meet is debt up to Rs. 60,000. Nonetheless, if the income is over a certain limit plus your debt amount is over this threshold, you will not be qualifying for the waiver.