Company Procedures Declared Bankrupt Under Law, Here Are The Conditions

The company's procedure is declared bankruptcy (Freepic)

YOGYAKARTA - In the course of a business, there are many challenges that need to be faced to be able to progress or develop. If the business cannot survive the existing challenges, the company may go bankrupt or fail. There is a company procedure declared official bankruptcy or according to the Law (UU).

However, companies that go bankrupt or have economic difficulties cannot necessarily be declared bankrupt. Bankruptcy is a condition when debtors are unable to pay off debts to two or more debtors. Bankruptcy is a common thing when debtors are unable to repay money loans within a certain period of time.

To make the company declared bankrupt, the debtor or creditor has the right to submit an application to a commercial court. So how is the procedure declared bankrupt based on the applicable law?

The meaning of bankruptcy based on the Encyclopedia of the Trade Finance Economy is a condition in which someone who by the court is declared bankrupt. His legacy or assets will be used to pay off his debts.

Based on the bankruptcy law, bankruptcy is a public confiscation activity for all assets owned by bankruptcy debtors. The management and settlement of this activity itself is carried out by the curator who is under the supervision of the supervisory judge in accordance with the rules of the Bankruptcy Law.

The application for bankruptcy of a company must meet certain requirements. The provisions for this bankruptcy application are included in the bankruptcy application procedure so that it can be processed and decided.

The requirements for applying for bankruptcy are directly regulated in the Bankruptcy Law. Based on Article 2 of the Bankruptcy Law, the requirements for the bankruptcy juridical must be met in order to file bankruptcy against the company.

The conditions that must be met to apply for bankruptcy are debt, one of which is that it is at least due and can be billed. In addition, there are 2 or more creditors, debtors, bankruptcy statements and bankruptcy statements from the Commercial Court.

For companies to obtain bankruptcy statements from the Commercial Court, bankruptcy procedures must be followed. Provisions regarding this bankruptcy filing procedure have been regulated in Law no. 37 of 2004 which discusses Bankruptcy.

The following are procedures that must be followed to obtain a company bankruptcy statement from the Commercial Court:

The first stage is the application for bankruptcy to the Chief Justice of the Court. In this case, it is mandatory to use a lawyer with the license of the Advocate Curator to be registered with the Panitera court.

Furthermore, the clerk must submit a petition for bankruptcy statement to the Chief Justice of the Court no later than 2 days after the date of the application is registered. Then the day for the trial will be determined within 3 days after the date of the application is registered.

The trial for examining the bankruptcy application will be held within a period of no later than 20 days after the date the application is registered.

The court will summon debtors if the bankruptcy application is submitted by creditors, prosecutors' offices, Bank Indonesia, the Minister of Finance, the Capital Market Supervisory Agency.

The court will usually call creditors if bankruptcy statements are submitted by debtors and there are also further needs in bankruptcy requirements that need to be met.

The summons for creditors and debtors was carried out by a bailiff with a quick letter. The summons process is carried out no later than 7 days before the first trial is conducted.

Then the court's decision on the bankruptcy petition must be granted if there is a fact that the bankruptcy requirement is met. The court's decision must be submitted no later than 60 days after being registered.

In the legal considerations that underlie the decision on the petition for bankruptcy statements, it must be fully contained in it. The decision must also contain the opinion of the Panel of Judges, which must be presented in an open session to the public and can be carried out first, even if there are legal remedies for the decision.

Those are the terms and procedures of the company declared legally bankrupt based on the applicable law. The company can only be officially declared bankrupt after going through a court process related to bankruptcy decisions. Also read the list of officially closed SOEs throughout 2023.

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