I have a question related to Insolvency Petition in the state Andhra Pradesh. My close friend ran into debts of about 50 lakhs. This is result of his losses in his business over last 5 years. He recently met with a major accident and still recovering with multiple fractures.
He is now under tremendous pressure from his debtors to pay off what he owe. Unfortunately he is not in position to do so. He tried to sell his properties but his value of his property is not more than 20% of his debt.
He already sold one property and paid off some money and his wife has property registered on her name from last 20 years or so. This is only home where they live.
Question is - Can he file Insolvency Petition (IP) with this situation? If yes, will court cease his wife's property as well? What consequences he may face after filing IP? Will he be sent to jail?
Your help is very much appreciated. Thank you