Section 129 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
When a creditor's application leads to a bankruptcy order, the bankrupt has only seven days to give the bankruptcy trustee a statement of financial position. Section 129 sets that duty, applies it to firms and partners, and lets the trustee ask for more. This article reads the section as printed in the IBBI consolidated text of the Code amended up to 12 August 2021. A bankrupt facing this seven-day task can take a legal consultation to prepare in time.
Where a bankruptcy order is passed on a creditor's application under section 123, the bankrupt must submit a statement of financial position to the bankruptcy trustee within seven days from the bankruptcy commencement date, in the form and manner prescribed. If the bankrupt is a firm, its partners on the date of the order submit a joint statement of the firm and each partner submits his own. The trustee may require further information in writing from the bankrupt or any other person.
Why section 129 applies only to creditor applications
Section 129(1) opens: "Where a bankruptcy order is passed on the application for bankruptcy by a creditor under section 123." A debtor who applies for bankruptcy has already attached a statement of affairs to his own application under section 122(1)(b), on the date of the application; see our article on sections 121 and 122. A creditor's application does not carry such a statement from the debtor. Section 129 fills that gap by requiring the statement after the order. This is read from the text of the two sections; section 129 does not itself explain why the distinction exists.
Section 129(1): seven days
"The bankrupt shall submit his statement of financial position to the bankruptcy trustee within seven days from the bankruptcy commencement date."
Three elements:
- Who submits: the bankrupt.
- To whom: the bankruptcy trustee, not the Adjudicating Authority.
- When: within seven days from the bankruptcy commencement date. Section 79 defines that date as the date on which a bankruptcy order is passed under section 126. The clock therefore starts with the order, and the bankrupt may have little notice of the date; see our article on the bankruptcy order under section 126.
The seven days are short, which is why a debtor who expects a creditor's application to succeed should gather records early. The section prints no consequence for missing the period, and it does not provide for an extension.
Section 129(2): form and manner
"The statement of financial position shall be submitted in the such form and manner as may be prescribed." (The words "the such" are printed so.) The prescribed form is not in the Code. The Insolvency and Bankruptcy Board of India (Bankruptcy Process for Personal Guarantors to Corporate Debtors) Regulations, 2019 is the regulation set for bankruptcy of personal guarantors; the copy consulted is amended up to 02-06-2026. No rules or regulations on other individuals or on partnership firms are in the texts consulted, so the contents of the statement are not described here.
Section 129(3): firms
"Where the bankrupt is a firm, its partners on the date of the order shall submit a joint statement of financial position of the firm, and each partner of the firm shall submit a statement of his financial position."
Two statements are therefore needed:
| Statement | By whom | Covers |
|---|---|---|
| Joint statement of financial position of the firm | The partners on the date of the order, jointly | The firm |
| Statement of financial position | Each partner, separately | The partner's own position |
This follows from section 128(3), under which an order against a firm operates as a bankruptcy order against each person who is a partner on the date of the order; see our article on sections 127 and 128. A person who ceased to be a partner before the date of the order is not covered by the words of sub-section (3).
Section 129(4): further information
"The bankruptcy trustee may require the bankrupt or any other person to submit in writing further information explaining or modifying any matter contained in the statement of financial position."
- The power is the trustee's.
- It reaches "the bankrupt or any other person". The sub-section does not limit "any other person".
- The information must be "in writing".
- Its purpose is to explain or modify a matter in the statement. It is not a general power of inquiry under this sub-section.
The bankrupt's wider duties of co-operation and disclosure are in section 150, discussed in our article on the duties of the bankrupt under section 150.
Example. A creditor's bankruptcy application against Naresh Pillai, a sole proprietor, results in a bankruptcy order on a stated date. Naresh must send his statement of financial position to the bankruptcy trustee within seven days from that date, in the prescribed form. The trustee then notices that a loan to a relative is shown without details. Under sub-section (4) he can require Naresh, or anyone else who knows, to explain it in writing. If the bankrupt had been the partnership Pillai & Sons with two partners, the two partners would give a joint statement for the firm and each would add his own.
How the statement is used
The statement is the bankrupt's account of his position. The Adjudicating Authority's public notice and the list of creditors that follow draw on the information he provides; section 130(1)(a)(i) refers to "the statement of affairs submitted by the bankrupt under section 129", and section 132(a) refers to the statement of affairs; see our article on sections 130 to 132.
Printing point: section 129 calls the document a "statement of financial position", while sections 130 and 132 call the document submitted under section 129 a "statement of affairs". The Code does not explain the difference in names in these sections. Both are quoted as printed.
The Amendment Act, 2026
The Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026) does not amend section 129 as printed in the texts consulted. The Amendment Act, 2026 comes into force on the date or dates the Central Government notifies; the notification is not in the texts consulted, so check whether any change in Part III has been notified.
Amendments and notifications made after 12 August 2021, other than the Amendment Act, 2026, are not in the texts consulted and should be checked.
Need help meeting the seven-day deadline?
A statement of financial position must be complete and on time, and a firm needs one joint statement and one for each partner. A legal consultation can help you organise the records, check the prescribed form and prepare answers to the trustee's follow-up questions.
Key takeaways
- Section 129 applies where the bankruptcy order follows a creditor's application under section 123.
- The statement goes to the bankruptcy trustee within seven days from the bankruptcy commencement date.
- Form and manner are as prescribed.
- A firm's partners give a joint statement, and each partner gives his own.
- The trustee may require further information in writing from the bankrupt or any other person.
Read next
- Sections 130 to 132: public notice, registration of claims and list of creditors
- Sections 127 and 128: validity and effect of the bankruptcy order
- Section 125: appointment of the bankruptcy trustee
- Duties of the bankrupt under section 150
Disclaimer: Based on the IBBI consolidated text of the Insolvency and Bankruptcy Code, 2016 amended up to 12 August 2021 and on the Insolvency and Bankruptcy Code (Amendment) Act, 2026 (No. 6 of 2026), which comes into force on the date or dates notified by the Central Government, as consulted on 2 October 2026. It explains the words of the statute only; commencement notifications, other amendments made after 12 August 2021, notified thresholds, the rules and IBBI regulations, and the way tribunals and courts apply these sections should be checked. This article is general information, not legal advice; check the official text before acting.