Until now, the phenomenon of business closure in the business world has become increasingly widespread, making the term bankruptcy and bankruptcy a familiar thing to hear. But apparently there are still many people who consider bankruptcy and bankruptcy the same thing. Even though these two things have differences. Companies as economic actors, in carrying out their activities with third parties, can give birth to a number of rights and obligations in the form of accounts receivable and debt.
A company that is declared bankrupt or goes bankrupt must go through a court decision. With the bankruptcy of a company, it means that the company must stop all activities and cannot enter into transactions with other parties again, except for liquidation. Then, how is the difference between bankruptcy and bankruptcy in the business world? Just go ahead and see the full description below.
Differences in Bankruptcy & Bankruptcy in the Business World that Must Be Known According to language, the word bankruptcy comes from French, which is failite which means Indonesian congestion in payment. Bankruptcy also means a process in which a debtor has financial difficulties to pay off debts that have been declared by the court. The court that has the right to sue is the commercial court, because the debtor cannot pay his debt. The problem of bankruptcy is the problem of the inability to repay debt. There is also a legal understanding in accordance with Law Number 37 of 2004 concerning Bankruptcy and Delay of Obligation to Pay Debt, that bankruptcy can be imposed if the debtor if:
Have two or more creditors.
Do not pay off at least one debt that has fallen due and can be billed.
Both on his own request and on the request of one or more creditors.
While bankrupt means the condition of a company that suffers a large loss to fall or can be called out of business. The cause of the bankruptcy of a company is due to the losses it experiences. That is, the company has an unhealthy financial condition. While bankrupt, even in a sound financial condition he can be declared bankrupt because of debt.
Causes of the occurrence of the condition
Differences in Bankruptcy & Bankruptcy in the Business World that Must Be Known If a company has two unpaid debts, the company is already eligible for bankruptcy. Some companies that go bankrupt are usually caused by:
Not able to capture every customer need.
Too focused on developing a product.
Having excessive fear. Having a fear of bankruptcy, loss and others is indeed a natural thing. But do not let the fear be excessive so as not to focus on serving the needs of consumers. This condition must be watched out because it will hinder the performance of the company which can bring the effect of destruction.
Stop to innovate. As great as any company, if it does not innovate it will cause the company to lose in competition and lag behind.
Less sensitive or less observing the movements of competitors.
Prices are too expensive.
Having debt dependents is the main cause of a company’s bankruptcy. Sometimes companies are too brave in taking risks by taking on debt that is too high, regardless of how to return it. This is what makes the company experience bankruptcy.
Companies that experience bankruptcy are usually characterized by managerial and operational indicators. Low economic growth can also be a pretty important indicator of weak business opportunities. In the session of the Constitutional Court (MK) in Case Number 18 / PUU-VI / 2008, bankruptcy was caused by two main things, namely:
External factors outside the employer’s authority, for example the IMF policy closes a number of banks in Indonesia which also have an impact on employers and laborers.
The existence of miss management, such as in 1998 the IMF forced to close a number of banks in Indonesia so that banks in Indonesia went bankrupt, many companies in Indonesia also went bankrupt.