NON-PERFORMING LOAN SETTLEMENT FOR RESIDENTIAL PROPERTY DEVELOPERS AMID THE COVID-19 PANDEMIC

Abstract

This research discusses the issue of Non-performing loan settlement for residential property developers amid the Covid-19 pandemic. The legal research used is a normative juridical method with a statutory approach. This research was conducted by making an inventory of primary and secondary materials to assess published legal issues. This research examines that the settlement of property developers' bad credit can be done by means of credit rescue and credit settlement. Credit rescue is carried out by providing easy conditions for debtors so that they are expected to complete their credit, which can be done by restructuring credit both inside and outside the court. Meanwhile, credit settlement is carried out by executing the collateral object made by the creditor, such as taking collateral, cessie, subrogation, execution of mortgage rights, lawsuit for default and bankruptcy. In the event of bad credit, creditors will generally choose the bankruptcy route to resolve bad credit by the developer. The bankruptcy of property developers will certainly be very detrimental to property consumers because the position of property consumers is only as concurrent creditors, which means that consumers will get the final payment after preferred creditors and separatists.