The Application of The Insolvency Principle as a Condition for a Debt Rexturization for a Bankrupt Company

Abstract

The application of the law relating to bankruptcy is the application of rigid rules because without paying attention to the debtor's condition that is located under challenging conditions. To avoid the application of strict laws for companies affected by the bankruptcy, then the implementation of the institution of insolvency in Indonesia, especially for companies that declared bankruptcy, would undoubtedly have an impact on the issues/problems of the law of conflict of norms (conflict of the model) between the regulation of the bankruptcy of his particular related to the institution of insolvency against the rules bankruptcy regulated in Law Number 9 of 2009 (the rules applicable local) compared with chapter 11 of the US Bankruptcy Code (the rules of the internationally), this research is legal research using Normative juridical approach, the data used are primary data and secondary data were analyzed by using quantitative analysis. The research results are the reorganization (restructuring and rehabilitation, restructuring corporate debtor) regulated in Chapter 11 of the U.S. Bankruptcy Code. In the case of repair, which the creditors see, is whether the debtor's income can pay off the bills they are, instead of seeing the Debtor's wealth at the time of bankruptcy proceedings began. The subject of bankruptcy is the stage where the debtor’s status is determined, in a superficial sense where the debtor's assets are divided to cover their debts or are still allowed to manage their assets.