Author(s): Teuku Syahrul Ansari, Benny Iswari, Nilam Nuraniyah and Afrizal Hadi Permana

Abstract: Basically, bankruptcy is a final resort for debtors who are in a state of insolvency where the debtor is no longer able to carry out obligations to its creditors. However, bankruptcy often occurs for companies that are still solvent, simply because they do not want to pay their debts because the bankruptcy law in Indonesia does not adopt an insolvency test in bankruptcy applications when viewed from the principle of business continuity. One of the paradigms of bankruptcy law is the value of justice so that the law can provide its true purpose, namely providing benefits, usefulness and legal certainty. Please note that the insolvency test is open access to financial reports that can be proven by financial due diligence on bankruptcy applications. This research will discuss how important it is to apply the insolvency test in bankruptcy applications when viewed from bankruptcy law in Indonesia, which is based on the principles of legal certainty and business continuity. Researchers see many pros and cons or conflicts between accounting and bankruptcy law on legal implementation if the insolvency test is implemented in bankruptcy applications in Indonesia. The law should be relied upon to fulfill the value of justice for debtors and creditors proportionally, but in this case there is a comparison between bankruptcy law and the insolvency test.

DOI: 10.22271/2790-0673.2024.v4.i2a.126

Pages: 64-67 | Views: 344 | Downloads: 146

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