Simple Verification Principles in Bankruptcy Procedures in Commercial Court of Indonesia

Abstract

The purpose of this paper is to explain how the verification of the principles of bankruptcy procedures for an institution and an individual must be carried out in a commercial court in Indonesia. A commercial court is a special court that handles bankruptcy requests for a trade. This paper uses a descriptive method with its main source, namely Law number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations. Law number 37 of 2004 annulls some of the previous bankruptcy regulations, including the regulation which states that district courts no longer have absolute ability to examine or terminate bankruptcy. Another change in Law number 37 of 2004 is that the bankruptcy procedure is handled specifically by the commercial court with a different procedure and verification principle that is simpler when compared to the previous bankruptcy procedure.