Bankruptcy and Postponement of Debt Payments for Large Companies
International Journal of Economics & Business Administration (IJEBA), 2020, vol. VIII, issue 2, 388-395
Purpose: This study aims to elaborate the problem concerning bankruptcy and the postponement of debt payment by arranging it in an article entitled the reconstruction of Law No. 37 of 2004. It also examines the fairness of bankruptcy law in Indonesia in terms of corrective justice and how to reconstruct bankruptcy requirements. Design/Methodology/Approach: The research method used in this paper is a type of normative juridical analysis with a methodology through statute approach, comparative approach, and conceptual approach. Findings: Distributive justice emphasizes the principle of proportional similarity and balance between creditors and debtors. In reality, there is an imbalance in the position of creditors and debtors, which can be seen from the easy conditions for bankruptcy of debtors. The conditions referred to are only using a minimum of two creditors and having at least one debt due. With these conditions, the debtor suffers a loss due to a very short minimum period of time, so that the debtor cannot save a penny of his property. This is where the debtor experiences in distributive and corrective injustices. Practical Implications: For the realization of distributive justice and corrective justice between creditors and debtors, it is important that the bankruptcy law is reconstructed by determining at least 5 creditors and having at least 2 debts due. In addition, it is also important to determine the minimum amount of debt that is due. Originality/Value: The article examines Law No. 37 of 2004 concerning bankruptcy and postponement of obligations to pay debt in terms of justice, especially distributive justice and corrective justice between creditors and debtors, especially for large companies.
Keywords: Debt obligation; corporate; debtors; bankruptcy; reconstruction. (search for similar items in EconPapers)
JEL-codes: K23 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:ers:ijebaa:v:viii:y:2020:i:2:p:388-395
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