Problematics of Property Companies Experiencing Bankruptcy

Abstract

Suppose a property company is incapable of repaying its creditors' debts after being declared bankrupt by the court; all of the debtor's assets will be utilized to settle its outstanding debts. The assets of the debtor will be included in the bankruptcy estate. Naturally, this will give rise to its own set of issues when a house that has been purchased and fully paid for is also included in the bankrupt estate. The purpose of this research is to explore the legal safeguards available to consumers when a property company goes bankrupt and determine the responsibilities of the company if a consumer's purchased and paid-for house becomes part of the bankruptcy proceedings. The author employs a normative juridical research method, primarily relying on literature reviews as the primary research source. The findings of the study indicate that consumer protection resulting from the bankruptcy of a property company entails entitlement to compensation, reimbursement, and/or restitution. However, to exercise these rights, consumers must initiate legal proceedings by filing a claim through the Consumer Dispute Settlement Agency (BPSK) or by pursuing default lawsuits in court. The Government also proposes to prevent a company from becoming bankrupt by conciliating. As for the responsibility of the property company to consumers, if the house that has been purchased and paid for is declared bankrupt, it has good faith to remove the house that has been purchased and paid for by the consumer from a bankrupt bank.