About Bankruptcy Law in Yogyakarta, Indonesia
In Yogyakarta, just like in the rest of Indonesia, bankruptcy law is governed by the Law of the Republic of Indonesia Number 37 of 2004 on Bankruptcy and Suspension of Debt Payment Obligation. This law applies to any individual, partnership or corporation which has at least two creditors and fails to pay at least one debt that has become due and payable.
Why You May Need a Lawyer
Navigating through bankruptcy proceedings can be complex and stressful. You may need a bankruptcy lawyer if you’re overwhelmed by debt and considering voluntary bankruptcy, or if your business is drowning in debt and needs restructuring. A lawyer can help you understand your rights, give you objective advice about your options and the long-term effects of bankruptcy. Moreover, a lawyer can guide you through the whole process, ensuring all documents are completed accurately and submitted timely.
Local Laws Overview
The primary law for bankruptcy and suspension of debt payment in Indonesia, including Yogyakarta, is Law No. 37 of 2004. This law stipulates that a debtor must have at least two creditors, with at least one debt in arrears. The bankruptcy laws also provide a legal process for distributing the bankrupt's assets to his or her creditors. Debts such as taxes, employee salaries, and certain pension obligations take priority in the payment hierarchy.
Frequently Asked Questions
What debts are discharged by bankruptcy?
Most unsecured debts like credit card bills, medical bills and personal loans are usually discharged in bankruptcy, but notable exceptions include student loans, certain taxes and family support obligations.
What assets can I keep after bankruptcy?
According to Indonesian bankruptcy law, certain assets are exempted from being included in the bankruptcy estate, including assets used for daily life such as residential home and items for personal use.
How does bankruptcy affect my credit?
Bankruptcy can severely damage your credit score and may remain on your credit report for up to 10 years, making it difficult to get credit, buy a home, get life insurance, or sometimes, get a job.
Can all businesses file for bankruptcy?
Yes. If a business cannot meet its financial obligations, it can file for bankruptcy. Just know that the bankruptcy filing will be a matter of public record and it can affect the business's image.
What can't bankruptcy do?
Bankruptcy cannot clear certain rights of secured creditors. It also can't discharge types of debts singled out by the bankruptcy law for special treatment, such as child support, alimony, certain other debts related to divorce, some student loans, court restitution orders, criminal fines, and most taxes.
Additional Resources
Contact the Indonesian Financial Services Authority (OJK) or the Commercial Court for cases related to bankruptcy. For reliable sources of information, visit the websites of Bankruptcy Court or Directorate General of General Law Administration.
Next Steps
Should you need legal assistance, gather all relevant financial documents and seek advice from a reputable legal professional experienced in bankruptcy law. Depending on your situation, you may also need to take steps to file for bankruptcy, which may include credit counseling and debtor education.
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