Q. With reference to Cross Border Insolvency, consider the following statements:
1. It denotes the treatment of financially burdened debtors where the assets are in more than one country (or) creditors are in more than one country.
2. India has a well-established Cross border insolvency framework.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Statement 1 is correct 

Statement 2 is incorrect: Cross border insolvency framework is yet to be notified under the Insolvency and Bankruptcy Code.  

So far, the Government was planning to bring the Cross border framework only for corporate insolvency resolution. But now the government wants to notify it together for both companies and personal guarantors for corporate debtors. 

Source: Personal guarantors may be part of cross-border insolvency framework