Proceedings of the International Conference for Democracy and National Resilience (ICDNR 2024)

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Legal Protection Against Violations of Creditors’ Rights Through The Collateral Take over Mechanism

Authors
Dera Antika Kumalasari1, *, Suraji1, Dona Budi Kharisma1
1Sebelas Maret University, Surakarta, 57121, Indonesia
*Corresponding author. Email: deraantika0105@student.uns.ac.id
Corresponding Author
Dera Antika Kumalasari
Available Online 27 December 2024.
DOI
10.2991/978-94-6463-634-5_20How to use a DOI?
Keywords
Legal protection; Human rights; Collateral take over
Abstract

Bad loans is a significant problem in the banking world. This study aims to analyze legal protection for debtors in resolving bad loans through the collateral take over mechanism at Rural Banks using empirical methods, namely the results of the author's observations regarding the implementation of collateral take over and a study of laws and regulations. The results of the study indicate that the collateral take over mechanism is a solution to bad loans and this process includes identification of problem loans, asset takeovers, asset valuations, asset sales, to recording and reporting in financial statements. Legal protection for debtors is contained in the regulations of Law Number 10 of 1998 concerning Banking and the Financial Services Authority Regulation, which has not regulated the protection of basic rights in human rights for debtors in the collateral take over process. Constitutional Court Decision No. 18/PUU-XVII/2019 also confirms that the execution of fiduciary guarantees cannot be carried out unilaterally without the consent of the debtor or a court decision, which strengthens the protection of debtor rights. Some of the main obstacles include, unclear and transparent provisions on collateral take over, creditor participation in the collateral take over process in auctions, high legal costs, lack of education and legal awareness among debtors, and limited access to legal aid. These obstacles can hinder debtors in fighting for their rights and seeking fair solutions.

Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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Volume Title
Proceedings of the International Conference for Democracy and National Resilience (ICDNR 2024)
Series
Atlantis Highlights in Social Sciences, Education and Humanities
Publication Date
27 December 2024
ISBN
978-94-6463-634-5
ISSN
2667-128X
DOI
10.2991/978-94-6463-634-5_20How to use a DOI?
Copyright
© 2024 The Author(s)
Open Access
Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

Cite this article

risenwbib
TY  - CONF
AU  - Dera Antika Kumalasari
AU  - Suraji
AU  - Dona Budi Kharisma
PY  - 2024
DA  - 2024/12/27
TI  - Legal Protection Against Violations of Creditors’ Rights Through The Collateral Take over Mechanism
BT  - Proceedings of the International Conference for Democracy and National Resilience (ICDNR 2024)
PB  - Atlantis Press
SP  - 165
EP  - 175
SN  - 2667-128X
UR  - https://doi.org/10.2991/978-94-6463-634-5_20
DO  - 10.2991/978-94-6463-634-5_20
ID  - Kumalasari2024
ER  -