Bankruptcy Regulations and Bankruptcy Requirements

Bankruptcy is regulated in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations as an update from Law Number 4 of 1998 concerning Bankruptcy. In the law, there are at least 3 requirements that must be met by the debtor, namely:

  1. The debtor has more than two creditors;
  2. The debtor does not pay at least one debt to one of the debtors when it is due and collectible;
  3. For filing for bankruptcy, the debtor can apply himself or there is an application from one or more of his creditors.

The existence of bankruptcy requirements is clearly regulated in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations to avoid:

  1. Seizure of the debtor's assets as a result of collection by creditors carried out in the same period.
  2. Creditors who hold the right to security over property disregard the interests of the debtor and other creditors by selling the property used as collateral.
  3. The possibility of the debtor having bad intentions by doing something related to the debtor's assets to then be given to one of the creditors with the aim of pursuing his own profits and harming other creditors.