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Insolvency test for bankruptcy cases in indonesia: is it necessary?
Subject Area:
Social Sciences and Humanities
Abstract:
In general, only insolvent debtor is declared bankrupt by the Court. Hence, the Court should reject request of bankruptcy if the debtor is still solvent. However, there are many cases in Indonesia where the court passed on bankruptcy decision to the solvent debtors. The purpose of this article is to examine the needs of using insolvency test for bankruptcy decision ruled down by the judge. This article employs normative legal research. The results show that it is not easy for the judge to implement the insolvency test in bankruptcy case because the Indonesian Bankruptcy Law regulates that authentication process should be done in a simple way.
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