IBBI Amends Insolvency Rules Allowing Same Professional for Corporate Debtor and Personal Guarantor

The Insolvency and Bankruptcy Board of India (IBBI) has amended the regulations for the insolvency resolution of personal guarantors to corporate debtors, effective May 19, 2025.

The key update allows the same insolvency professional (IP) to be appointed for both the corporate debtor and the personal guarantor, aiming to enhance procedural efficiency.

The amendments also require holding creditors’ meetings and mandate the resolution professional to report to the Adjudicating Authority if no repayment plan is submitted under Section 105.

These changes aim to streamline the process, ensure better coordination, and uphold transparency in personal guarantor insolvency cases.