New Delhi, May 19 -- Adding assets of personal guarantors to the bankruptcy estate of defaulting companies will be useful for debt resolution, especially in the case of factories, the Insolvency and Bankruptcy Board of India (IBBI) said in its latest quarterly update released on Monday.

The IBC Amendment Act, 2026, which received Presidential ascent in April, enables the transfer of guarantors' assets as part of the insolvency resolution of the debtor company-a significant reform, Ravi Mital, the chairperson of IBBI, said in the March quarter update.

This is particularly useful in situations where assets of the debtor company and the guarantor are closely interlinked, Mital added.

For example, a factory may be owned by the company, whi...