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Name : Saeful Imam

Subjects: Law

12 November 2022

Understanding the Difference between Bankruptcy and Bankruptcy in the Business World

According to the language, the word bankruptcy comes from French, namely failite which is deep

In Indonesian, it means congestion in payments.

Bankruptcy also has the meaning as a process in which a debtor has

financial difficulties to pay the debt that has been declared by the court.

The court that has the right to sue is the commercial court, because the debtor

unable to pay his debts.

There is also a legal understanding in accordance with Law No. 37 of the year

2004 concerning Bankruptcy and Suspension of Debt Payment Obligations, that the bankrupt can

imposed if the debtor if:

1. Have two or more creditors.

2. Not paying off at least one debt that has matured and can

billed.

3. Either at his own request or at the request of one or more

the creditor.

While going bankrupt means the state of a company that suffers big losses

to fall or can be called out of business.

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The cause of the bankruptcy of a company is due to the losses it has suffered.

This means that the company has an unhealthy financial condition.

While bankrupt, even in a healthy financial condition he can be declared bankrupt because

debt.

The Cause of the Condition

If a company has two outstanding debts, then the company

has met the requirements for bankruptcy.

Some companies that go bankrupt are usually caused by:

1. Unable to capture every consumer need.

2. Too focused on developing a product.

3. Have excessive fear. Have a fear of bankruptcy, loss and

others is a natural thing. But don't feel

the fear is excessive so that it makes it not focus on serving

consumer needs. This condition must be watched out for because it will

hamper the company's performance which can have devastating effects.

4. Stop innovating. No matter how great a company is, if

If you don't innovate, it will cause the company to lose

in competition and left behind.

5. Less sensitive or less observing the movement of competitors.

6. The price is too expensive.

7. Have debts that are the main cause of bankruptcy

a company. Sometimes companies are too bold in taking

risk by taking on too high a debt, regardless

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how do i get it back. This is what makes the company

experiencing bankruptcy.

Companies that experience bankruptcy are usually marked by the presence of indicators:

managerial and operational.

Low economic growth can also be a fairly important indicator of

Weak business opportunities.

In the trial of the Constitutional Court (MK) in Case Number 18/PUU-VI/2008, bankrupt

caused by two main things, namely:

1. External factors beyond the authority of the entrepreneur, for example IMF policies

closed a number of banks in Indonesia which also had an impact on

entrepreneurs and workers.

2. The existence of miss management, such as in 1998 the IMF forced it to close

a number of banks in Indonesia so that banks in Indonesia went bankrupt, many

companies in Indonesia also went bankrupt.