Insolvency and Bankruptcy Code 2016 / Part III / Section 80

Part III - Insolvency Resolution and Bankruptcy for Individuals and Partnership Firms

Chapter II - Fresh Start Process

Section 80 IBC 2016: Eligibility for Making a Fresh Start Application

Section 80 of the Insolvency and Bankruptcy Code, 2016 specifies the conditions a debtor must satisfy to seek a fresh start for discharge of qualifying debt under Chapter II of Part III.

Text of Section 80

80. Eligibility for making an application.

(1) A debtor, who is unable to pay his debt and fulfils the conditions specified in sub-section (2), shall be entitled to make an application for a fresh start for discharge of his qualifying debt under this Chapter.

(2) A debtor may apply, either personally or through a resolution professional, for a fresh start under this Chapter in respect of his qualifying debts to the Adjudicating Authority if -

(a) the gross annual income of the debtor does not exceed sixty thousand rupees;

(b) the aggregate value of the assets of the debtor does not exceed twenty thousand rupees;

(c) the aggregate value of the qualifying debts does not exceed thirty-five thousand rupees;

(d) he is not an undischarged bankrupt;

(e) he does not own a dwelling unit, irrespective of whether it is encumbered or not;

(f) a fresh start process, insolvency resolution process or bankruptcy process is not subsisting against him; and

(g) no previous fresh start order under this Chapter has been made in relation to him in the preceding twelve months of the date of the application for fresh start.

Meaning and Purpose of Section 80

The fresh start process is intended by Chapter II of Part III to provide a statutory mechanism for an eligible debtor who is unable to pay debt to seek discharge of qualifying debt. Section 80 is the gateway provision: every condition in sub-section (2) must be considered before an application can be made under this Chapter.

Eligibility Conditions Under Section 80(2)

Meaning of Qualifying Debt

Section 79 defines "qualifying debt" for Part III. Broadly, it is an amount due, including interest or another sum due in respect of amounts owed under a contract, for a liquidated sum payable immediately or at a certain future time. The definition excludes an excluded debt, debt to the extent it is secured, and debt incurred during the three months before the fresh start application.

Who May File the Application?

Section 80(2) permits an eligible debtor to apply either personally or through a resolution professional. Section 81 then deals with the application for a fresh start order and the consequences that follow upon filing.

Current Commencement Position

Section 80 forms part of the fresh start process in Chapter II of Part III. Although the Code contains this statutory framework, the commencement of Part III has been implemented selectively. The Central Government notification that brought specified Part III provisions into force from 1 December 2019 for personal guarantors to corporate debtors expressly excluded the fresh start process. Accordingly, the statutory eligibility criteria in Section 80 should not be confused with a generally operational fresh start filing mechanism for personal guarantors under that notification.

Important: Before attempting to use the fresh start process, verify the current commencement notification and applicable rules. The statutory text of Section 80 remains part of the Code, but availability of the process depends on the relevant provisions having been brought into force for the category of debtor concerned.

Official Legal Resources

For the current statutory text and commencement framework, refer to India Code and the Insolvency and Bankruptcy Board of India legal framework. Rules, regulations and notifications are available through the official IBBI legal framework.

Last reviewed: 30 September 2026.