SUSPENSION OF OBLIGATION FOR PAYMENT OF DEBT (PKPU) SERVICE
Suspension of obligation for payment of debt Service (PKPU) provides legal solutions for individuals or businesses facing financial difficulties in debt repayment. Clients can apply for the petition Suspension of obligation for payment of debt Service (PKPU) Application through the Commercial Court at the District Court. The petition for suspension of obligation for payment of debt can be filed by Clients who are Debtors and Creditors. The objective from Suspension of obligation for payment of debt Service (PKPU) is to aid clients in managing their debt burdens through a balanced financial restructuring approach.
Suspension of obligation for payment of debt Service (PKPU) is a process for debtors to postpone payments to creditors with the aim that the Debtor can prepare a Peace Plan to restructure his debts to. The requirements for filing PKPU are regulated in Article 222 paragraphs (1) and (2) jo. Article 8 paragraph (4) of Law No. 37 of 2004 concerning Bankruptcy and Suspension of Obligation for Payment of Debts.
The requirements consist of:
- Debtor who has more than 1 (one) Creditor.
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Unpaid debt that has been due and payable.
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Fact or condition that requires simple substantiation.
In addition to PKPU, one of the mechanisms for resolving debt and credit disputes is bankruptcy. Bankruptcy shall mean general confiscation of all assets of the Bankrupt Debtor that will be managed and liquidated by a Curator under the supervision of Supervisory Judge as provide for herein, regulated in Article 1 number 1 of the Bankruptcy and Suspension of Obligation for Payment of Debts.
Similar to PKPU, the parties involved in bankruptcy must pay attention to several things during the bankruptcy process in the Commercial Court.
Conducting a Suspension of obligation for payment of debt Service (PKPU) Involves several key steps:
1. | Initial Consultation: Clients engage with legal professionals to assess the feasibility and requirements of PKPU services in addressing financial challenges. |
2. | The Petition for Suspension of Obligation for Payment of Debt: Clients formally submit a Petition for Suspension of Obligation for Payment of Debt to the Commercial Court at the District Court, providing detailed explanations of the reasons and plans for financial restructuring. |
3. | Management Process and The Administrator Appointment: The court appoints the administrator as an administrator, and clients which are in the position of Debtor or Creditors, participate in a management process to reach a reconciliation in Suspension of Obligation for Payment of Debt. |
4. | Creditor’s Meeting: After The Petition for Suspension of Obligation for Payment of Debt is granted, Client in position as the Debtor or the Creditor will initiate a Creditor’s Meeting to discuss the restructuring of the receivables in order to reach a reconciliation. |
5. | Approval and Implementation: After a reconciliation in Suspension of Obligation for Payment of Debt (PKPU) accepted, the next steps a reconciliation is legalized through a decision form Commercial Court at the District Court, the term is known as “Homologation”. |
6. | Homologation Assistance: After the reach of Homologation, Client as a Debtor or Creditor will be assisted until the homologation is finalised or there is a further attempt at bankruptcy. |
Benefits of Using Our service in Suspension of Obligation for Payment of Debt (PKPU):
Legal Protection
Suspension of obligation for payment of debt Service (PKPU) provides clients with a legal shield, because the PKPU can protect debtors from creditor actions for a short time, offering a breathing space to reorganize and address financial challenges.
Structured Debt Resolution
The service facilitates a structured approach to resolving debt issues, whether through negotiations or a court-approved repayment plan, ensuring a more organized and manageable process for clients.
Negotiated Agreements
With the involvement of The Administrator, PKPU encourages negotiated agreements between debtor and creditors, fostering fair and sustainable solutions that benefit both parties while avoiding the need for more adversarial legal proceedings.
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