ESTABLISHING A LEGAL MECHANISM FOR SETTLEMENT OF DEBTS AND CREDITORS ACCORDING TO THE BANKRUPTCY LAW

Abstract

ABSTRACT

The financial crisis that hit Indonesia in mid-1997 had a negative impact on the national economy, caused great difficulties in settling debts and receivables for companies to continue their activities, and had a negative impact on society. At that time, many problems arose. Many companies struggle to pay their debts to their creditors and, moreover, many companies go bankrupt. In legal practice, often a debtor (debtor) neglects to fulfill his obligations or achievements, not because it is caused by compelling circumstances (overmacht). Such a situation is called breaking a promise (wanprestasi). And some entrepreneurs in Indonesia through their companies do not carry out careful calculations on debt through borrowing and borrowing with companies from outside the country. The decline in the rupiah exchange rate has caused at least 3 (three) negative impacts on the national economy, namely: Negative Payments, Negative Spread, Negative Equity. The above circumstances have put many companies at risk of bankruptcy due to the state of the national economy and the inability to pay the company's debts, which are usually denominated in dollars. One of the purposes of this research is to prevent debtors from taking actions that harm creditors, with the method of empirical normative juridical writing in order to build a strong legal mechanism in solving this problem, a legal framework is needed to manage debt problems quickly, effectively, efficiently and fairly. however, this law also poses many problems in its implementation. Therefore, a solution is needed to overcome bankruptcy by building a strong legal mechanism so that the final settlement of bankruptcy can become law itself, namely justice for the parties.

Keywords: Legal Mechanisms, Bankruptcy, Receivables