Differences In Bankruptcy And Bankruptcy In The World Of Business In Indonesia

Company illustration (Remy Gieling on Unsplash)

YOGYAKARTA In the business world, a company can be declared bankrupt. This happened in many cases, one of which happened to PT Sri Rejeki Isman (Sritex). Sritex's company was declared bankrupt by the Semarang City District Court. Outside of the case, did you know the difference between bankruptcy and bankruptcy?

Many misunderstandings by the public regarding bankruptcy and bankruptcy. Some even think that bankruptcy and bankruptcy are two words that have the same meaning. Whereas in the business world both have differences. The following is different bankrupt and bankrupt.

When viewed in terms of language, bankruptcy and bankruptcy have different meanings. This is as contained in the Big Indonesian Dictionary (KBBI).

According to KBBI, bankruptcy is suffering from large losses to falling (about companies, shops, and so on); going out of business. Meanwhile, bankruptcy in the context of business is interpreted as a situation or condition of a person or legal entity who is no longer able to pay obligations (in terms of debts) to the receivable.

In Indonesia, there are clear rules governing the bankruptcy conditions of a company. The bankruptcy rules are clearly explained in Law Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (UU 37/2004).

The regulation states that bankruptcy can be imposed on debtors if they have at least two creditors, do not pay off at least one debt that has matured, and can be dropped due to their own request or the application for at least one creditor.

Different from bankruptcy, bankruptcy is not specifically regulated by law or other government regulations.

Referring to Law 37/2004, bankruptcy is caused by the company's inability to pay debts. This means that companies with the status of debtors are unable to pay their payment obligations to other parties who are creditors. This means that bankruptcy is closely related to the ability to pay the company's debt.

Meanwhile, the cause of bankruptcy can occur due to many factors. For example, companies affected by certain policies that make the company lose money. Bankruptcy can also occur due to management errors. Or it could also be because the company suffered a big loss in running its business. Check out the articles of large companies that went bankrupt in Indonesia to get an example of the case.

A company cannot claim that it is experiencing bankruptcy without any clear evidence and reasons. The bankruptcy verdict was handed down based on the Commercial Court. In addition, bankruptcy was filed by parties who felt aggrieved by the company.

After the Commercial Court decides the bankruptcy company, the Commercial Court will appoint a curator to manage the company's assets. Through the curator, the company's assets will be confiscated and sold to pay off debts.

In contrast, companies experiencing bankruptcy can still operate under the supervision of fraud. In addition, the company will also receive protection from creditors to companies experiencing financial loans.

That's information related to differences in bankruptcy and bankruptcy. Visit VOI.id to get other interesting information.