Personal Guarantor Repayment Plan: Income, Essential Expenses and Creditor-Vote Preparation
By Ravi Sisodia · Reviewed by CA Divyanshu Sengar · Updated 5 October 2026
2-minute summary
- Separate recurring verified income from one-off or uncertain receipts.
- Essential expenses should be evidenced and realistic; suppressing them makes the plan fragile.
- Asset-sale proceeds require title, valuation and timing assumptions.
- Creditor voting and plan approval should use the current PG regulatory process.
Current position
Control and evidence map
| # | Control / evidence requirement | |
|---|---|---|
| 1 | Prepare a monthly cash-flow baseline from bank statements and tax records. | |
| 2 | Identify protected/essential expenditure and explain material changes from historical spending. | |
| 3 | Model asset sales with valuation, costs and realistic completion dates. | |
| 4 | Show creditor-wise distribution and sensitivity if income or sale proceeds fall short. | |
| 5 | Maintain the version presented to creditors and the version filed with the tribunal. | |
Worked example
A guarantor proposes Rs. 1 lakh monthly repayment based on projected consulting income of Rs. 3 lakh. Historical bank statements show only Rs. 1.8 lakh average receipts and Rs. 1.1 lakh essential household/tax outflow. The plan should use a defensible base and separately identify upside income; otherwise the creditor vote is being asked to rely on an unsupported forecast.
Common mistakes
- Using gross salary/revenue instead of post-tax disposable cash.
- Leaving family/medical/essential expenses unsubstantiated.
- Counting an asset sale at full headline value without time/cost risk.
- Changing repayment assumptions after creditor voting without a clear process trail.
Frequently asked questions
What makes a repayment plan credible?
Evidence-backed disposable cash flow, realistic asset proceeds and transparent creditor treatment.
Should every expense be cut to the minimum?
No; essential and legally unavoidable costs must be realistically recognised.
How should uncertain income be shown?
As a sensitivity/upside rather than guaranteed base cash flow.
What document is critical?
A version-controlled plan with source schedules for income, expenses, assets and creditor distribution.
Official sources
- Insolvency and Bankruptcy Board of India - IBBI (Insolvency Resolution Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 (amended up to 2026-06-02)
- Insolvency and Bankruptcy Board of India - Circular - Formats under PG Insolvency Resolution Regulations (2026-06-02)
Disclaimer
Educational and professional reference only; confirm the current law, rates and the facts of your case before relying on this page.