The Verification Of Receivables In Bankruptcy Process

The verification activity is a verification activity and/or the settlement to all the debtor’s debts that is declared bankrupt which is conducted at the creditors meeting. The verification of receivables is stipulated in Article 113 up to Article 143 of Law No. 43 of 2007 on The Bankruptcy and The Suspension of Obligation for Payment of Debts (Bankruptcy Act). In the bankruptcy process, the creditors are obliged to register their receivables to the curator and after that such verification of receivables shall be held to carry out the bankruptcy process. Pursuant to Article 113 Paragraph (1) of the Bankruptcy Act, the verification of receivables is conducted at the creditor meeting, after the bankruptcy judgement is rendered. No later than 14 (fourteen) days from the date of decision on the declaration of bankruptcy, the supervisory judge shall determine: The deadline for filing the claims, the deadline for tax verification, the day, date, time and venue of the Creditor’s Meeting for the verification of receivables.

Furthermore, at the creditor's meeting the curator shall provide a list of the claims. The curator is obliged to enter the approved claim in a temporary list of acknowledgment, while the contested claim shall be entered into a separate list stating the reasons of the contest.  Each of the receivables list shall also include a note against each claim stating whether in the Curator’s opinion such claim is privileged or secured by lien, fiduciary security, security right, mortgage, or other collateral rights on property, or whether the retention rights on the claim may be executed. The copy of each list shall be provided by Curator at the Court Registrar Office for 7 (seven) days prior to the date of verification of debts/claims (Article 119 of the Bankruptcy Act).

At the verification of debt meeting will then be a verification on the creditor’s claim together with the debtor’s statement.  At the verification of debt meeting, the Supervisory Judge shall read the list of temporarily acknowledged claims and the list of the claims disputed by the Curator. Each of the creditors whose names are listed in the receivables list may request that the curator to provide the information about each receivable and its placement in the list, or may deny the debt of receivables, the right to precedence, or the right to retain property, or to confirm the Curator’s objection of the claims.  The Curator may withdraw its temporary acknowledgment of claims or objection made earlier, or demand that the Creditor confirm or take an oath on the truth of its claim which are not contested neither by the Curator nor by  another creditor. In the event that there is a dispute while the judge is not able to reconcile both of the parties, even if the dispute has been referred to court for settlement, the Supervisory Judge shall order the two parties concerned to settle the dispute before the Court.

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