In the past two decades, we have observed delays from the builders/developers side in giving possession to home buyers. These builders often borrow money form the home buyers and further are incapable of fulfilling their commitment in delivering the aforesaid flat/homes and other real estate projects. Homebuyers had invested their life savings and hard-earned money in the builder's project and also has taken loans from the bank and paying EMI's for the flats, whose allotment and possession is still due. The builders have physically and mentally harassed homebuyers over the years, and we have seen their sufferings from various judicial precedents of Amarpali, Jaypee Infratech and Supertech cases. Considering the aforesaid factors, this paper article will highlight how the government has taken the initiative to bring homebuyer under the definition of the financial creditor by amending the Insolvency and Bankruptcy Code, 2016 and is still in the process to come with an effective ordinance to deal with and overcome the existing lacunas under the Code.