ISLAMIC LEGAL PERSPECTIVE RESOLUTION OF BANKRUPTCY IN SHARIA BUSINESS DISPUTES

Abstract

Purpose: Disharmony in bankruptcy laws in Sharia business impacted public distrust and lack of legal certainty in society. The urgency of this research requires legal reform and renewal regarding the authority of religious justice institutions as the sole adjudicators in the realm of sharia law to guarantee legal certainty. This research aims to determine the effectiveness of bankruptcy dispute resolution from a sharia perspective. Method: This qualitative research uses a normative juridical approach, and the legal sources used are primary and secondary. Legal sources are collected through literature reviews, then analyzed and described systematically, descriptively, and prescriptively to answer current and future. Results and Conclusion: The result is that there is a need for a legal stipulation that religious courts are the only institutions authorized to decide on the resolution of bankruptcy disputes based on Sharia law so that Sharia bankruptcy law becomes effective. Implications of research: Research on the Islamic legal perspective the resolution of bankruptcy in Sharia business disputes can have several significant implications among others are legal framework development. Such research can contribute to the development of a comprehensive legal framework within Islamic jurisprudence for handling bankruptcy cases in Sharia-compliant businesses. This includes exploring the principles outlined in Islamic commercial law (Fiqh al-Mu'amalat) and their application to modern economic systems.