This study critically examines the inputs, processes, and outcomes of the Insolvency and Bankruptcy Code (IBC), 2016, positioning it as one of India’s most significant economic and financial reforms aimed at strengthening creditor recovery and sustaining economic stability. Using secondary data from the annual reports of the Insolvency and Bankruptcy Board of India (IBBI), the research evaluates key variables including the number of admitted cases, withdrawals under Section 12A, appeals, reviews, settlements, cases under resolution, and liquidations. The analysis highlights a worrying trend of increasing insolvency cases alongside declining resolution rates, rising liquidations, and substantial haircuts, which collectively reflect a drift from the IBC’s core objectives of achieving timely and value-maximizing resolutions. Even in resolved cases, the prevalence of steep haircuts raises concerns over the protection of financial creditors’ interests and the overall effectiveness of the framework. These findings underscore the urgent need for policy interventions and targeted reforms to realign the IBC with its intended purpose. Strengthening the resolution process, improving time-bound outcomes, and ensuring higher value recovery are essential to safeguard the interests of banks, businesses, and other stakeholders, while reinforcing public confidence in the insolvency ecosystem and contributing to sustainable economic growth and sound public policy.