Demand Notice under Section 8 of IBC
Insolvency and Bankruptcy Code was introduced in 2016. Under section 8 of this code, before filing the petition to initiate the insolvency resolution, the debtor is given a chance to repay the debts. This is done through filing a demand notice under section 8 of IBC code 2016.
Under section 8 of IBC, the creditor sends the debtor a section 8 demand notice along with the invoice of unpaid financial/operational debts. The debtor has to respond to the demand notice within 10 days of receiving it. If the debtor does not respond to the notice within 10 days or the demand is unsatisfactory, the petition of Insolvency resolution can be filed.
One of the major advantages of section 8 Demand notice is that it can lead to debt repayment. This happens because Insolvency resolution proceedings can be a lengthy affairs. Therefore, debtors most often try to prevent it which makes the notice quite beneficial for the creditor.
The demand notice under IBC has a specific format that requires the creditor to fill it with absolutely correct information. This is where the industry experts of Registrationwala can help you.
Registrationwala is a team of Insolvency experts that can help you in drafting the correct notice by following the correct section 8 demand notice format. Our legal team ensures that every detail of the Demand notice is without any issues.
Documents Required to file Section 8 Demand Notice
Following are the documents required to file draft a Section 8 demand notice:
- Invoice of the unpaid amount.
- Creditor Information.
- Debtor Information.
- Details of the amount that are claimed to be default.
- Details of the Security Held, if any
- Records from the information utility that indicate default.
- Any contract or other document that suggest default in payment.