Responsibilities of Personal Guarantors in the Event of Dispute of Bankruptcy between Creditors against Debtors

International Journal of Research and Innovation in Social Science (IJRISS) | Volume II, Issue XI, November 2018 | ISSN 2454–6186

Responsibilities of Personal Guarantors in the Event of Dispute of Bankruptcy between Creditors against Debtors

Ericko Priambodo1, Dr. Yudho Taruno Muryanto, S.H., M.Hum.2, Prof Adi Sulistiyono3

1Master Degree Program
2, 3Master of Law Lecturers in Sebelas Maret University Surakarta, Indonesia

Abstract:-Many problems faced in business interactions between creditors and debtors in practice e.g. the debtor cannot fulfill its obligations to the creditor. One of them is through the bankruptcy application mechanism at the Commercial Court regulated in Law No. 37 of 2004 concerning Bankruptcy and Delaying Obligations to Pay Debt. Munir Fuady terms bankruptcy to insolvent when the company (or private person) is unable or unwilling to pay its debts. Therefore, rather than the creditor scrambling over the debtor’s assets, the law considers it necessary to regulate it so that debtor debts can be paid in an orderly and fair manner. The type of research in this thesis is including the type of normative legal research. Normative legal research is studies of law that are conceptualized and developed on the basis of the doctrine adopted by the conceptor and / or the developer. There are various legal doctrines developed, ranging from classical doctrine/natural law flow, positivism, historicism, to functionalism realism. This doctrinal method in Indonesia is commonly referred to as a normative research method. The conclusion of this study is that the Personal Guarantor can be bankrupted if the debtor is unable to repay the debt to the creditor on terms and conditions, namely, first, when the personal guarantor does not release his privileges, the bankruptcy request to the person Guarantor can only be done after the creditor has made legal remedies related to the debtor’s assets but the existing assets are not sufficient to repay the debt and the position of the personal guarantor becomes the legal subject of the bankruptcy petitioner who can repay the remaining debts. However, if the personal guarantor has waived his privileges and if the debtor is unable to pay off his debt either legally or non-legally, the Personal Guarantor can be used as a legal subject for the bankruptcy respondent because he has the same position as the debtor in the debt-receivable agreement with the creditor.

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