Conflict of Legal Norms Regarding Regulation of Creditors of Encumbrance Rights Holders in the Debtor's Bankruptcy in Indonesia

Abstract

Encumbrance Rights is one of the material guarantees. The main function of guarantees is to provide creditors with confidence that the debtor will carry out the agreement. The existence of collateral gives a preferred position to the creditors of encumbrance rights holders. In addition, Encumbrance Rights Holders also hold the position as separatist creditors. This is confirmed in the Encumbrance Rights Act and the Bankruptcy Act. On the other hand, the Bankruptcy Law also regulates the existence of a waiting period which undermines the rights of separatist creditors. The study aims to create a model to resolve conflicting legal norms to provide legal protection to creditors of encumbrance rights holders in debtor bankruptcy. The research uses socio legal research method. The facts show that there is a conflict of legal norms regarding the arrangement of Encumbrance Rights Holder between the Encumbrance Right Guarantee Act and the Bankruptcy Act, resulting in a dispute in the implementation of the encubrance rights in the case of a bankrupt debtor. This results in the absence of legal certainty and lack of legal protection for creditors of Encumbrance Rights Holder.