The Definition Of Bankcruptcy In Indonesia

Grammatically, bankruptcy means everything related to bankruptcy. In Black's Law Dictionary bankruptcy or Bankrupt is the state or condition of a person (individual, partnership, corporation, municipality) who is unable to pay is debt as they are, or become due. The term includes a person against whom an involuntary petition has been filed, or who has filed a voluntary petition, or who has been adjudged a bankrupt.

Black's Law Dictionary defines bankruptcy as being related to the inability to pay a person (debtor) his or her debts which are due. This inability must be accompanied by a concrete action to submit, either voluntarily by the debtor himself, or at the request of a third party (excluding the debtor), an application for a bankruptcy declaration to the Court (Ahmad Yani and Gunawan Widjaja. 2002:11-12) .

Bankruptcy or Bankruptcy is one way of dealing with debts you cannot pay. The bankruptcy proceedings: 1) free you from overwhelming debts so you can make a fresh start, subject to some restrictions; and 2) make sure your assets are shared out fairly among your creditors. Bankruptcy is "The relatively tight connection between debt levels and bankruptcy rates" (Gordon Bermant and Ed Flynn, 2001: 7). Bankruptcy in this case has a close relationship with debt and bankruptcy. Bankruptcy is a way to deal with debt and non-payment, where a process of freeing debts can make a new start by ensuring sufficient assets to meet debts owed to creditors.

The term bankruptcy used in Indonesia comes from the word bankrupt which comes from Dutch, namely failliet which means bankruptcy, bankrupt and faillissement for the term bankruptcy which means a state of bankruptcy. Meanwhile, in English, for the terms insolvency and insolvency, the terms bankrupt and bankruptcy are used. The following are the opinions of several experts is :

1) According Subekti, bankruptcy is a joint effort to get payment for everyone who owes money fairly.
2) According Soekardono, bankruptcy is a general confiscation of the bankrupt's assets for the benefit of all his claimants, so that the Inheritance Hall is tasked with maintaining and clearing up the debts of the bankrupt person.
3) According to Kartono, bankruptcy is a confiscation and execution of all of the debtor's assets for the benefit of all his creditors together, who at the time the debtor was declared bankrupt had receivables and for the amount of receivables that each creditor had at that time. Based on the opinions of several experts above regarding the definition or understanding of bankruptcy, the following elements can be drawn, namely:

1) Bankruptcy is intended to ensure equal distribution of the Debtor's assets among the Creditors.
2) Bankruptcy prevents Debtors from carrying out actions that could harm the interests of Creditors.
3) Bankruptcy provides protection to Debtors who have good intentions from their Creditors, by obtaining debt relief.

From the various opinions and understandings above, bankruptcy can simply be interpreted as the confiscation of all assets of debtors who are unable to pay, which are included in the bankruptcy petition. The bankruptcy debtor loses the ability to control and manage his assets which are included in the bankruptcy code starting from the bankruptcy declaration.

The definition of bankruptcy according to Law No. 37 of 2004 Article 1 number 1 is "general confiscation of all assets of a bankrupt debtor whose management and settlement are carried out by a curator under the supervision of a supervisory judge as regulated in this law". The definition of bankruptcy according to the Big Indonesian Dictionary is "the condition or condition of a person or legal entity that is no longer able to pay its obligations (in terms of its debts) to its receivables".