Debt Recovery

Introduction

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Bankruptcy is a legal process designed to provide relief for individuals and entities unable to pay their debts. In Bangladesh, the primary legislation governing this is the Bankruptcy Act, 1997. This Act aims to ensure an orderly process where a debtor’s assets are distributed fairly among creditors, while also offering the debtor protection from legal action by creditors and, ultimately, a fresh start from overwhelming debt. However, it’s noted that the 1997 Act is considered somewhat outdated and may not effectively address modern corporate insolvency complexities.