Resolution over the liquidation of a bankrupt company is desirable as it better protects the interests of shareholders and employees. But, the number of liquidations have been reported to be three times of resolutions under Insolvency and Bankruptcy Code of India.Existing literature provides that bankrupt companies should be resolved or liquidated depending on their potential to contribute to the economic growth of a nation. This study attempts to determine whether outcomes of bankruptcy proceedings in India depend on the competence of companies or not. It also delves into other factors impacting the likelihood of survival of companies after bankruptcy proceedings. This study has used logistic regression and independent sample t-test for analyzing 115 responses of insolvency professionals on a questionnaire investigating reasons behind the outcome of resolution vs. liquidation. Additionally, it has also used phenomenological analysis to analyse the interviews of 10 insolvency professionals. Results reveal that the outcomes of bankruptcy proceedings are not being based on the economic efficiency of companies.However, if a company timely files for bankruptcy, it has 1.731 times the chances of resolution over liquidation. Phenomenology has unfolded the plight of insolvency professionals, incompetence of National Company Law Tribunal, and drawbacks of the supremacy of committee of creditors.