Legal Position of Creditors Holding Fiduciary Security Rights in Debtor Bankruptcy Processes
Author(s): Selvia Oktaviana, Siti Nurhasanah, Aprilianti Aprilianti, Kasmawati Kasmawati, Elly Nurlaily
Institution: Universitas Lampung,Indonesia
Category: Article, Bankruptcy, IJMMU, Law
Topics: Fiduciary; Creditors; Debtor; Bankruptcy
Abstract: This paper examines the legal position of creditors holding fiduciary security rights during debtor bankruptcy proceedings. Under Indonesian law, particularly the Fiduciary Law, creditors holding fiduciary rights are classified as separatist creditors, meaning they have the ability to sell the secured assets independently of the bankruptcy estate, as if bankruptcy had not occurred. This privileged status allows fiduciary creditors to prioritize their claims over other creditors. However, the paper also discusses the limitations of this right, particularly in situations where the sale of assets must benefit the bankruptcy estate or when there are legal challenges to the execution of the fiduciary rights.
Article can be downloaded >> Legal Position of Creditors Holding Fiduciary Security Rights in Debtor Bankruptcy Processes
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