Debt Settlement Research Articles

The Role of Environmental Bonds in the Settlement of Environmental Debts

The concept of environmental debt, which has several dimensions, emerged in the nineties. One of these dimensions is spatial, referring to the debts that southern countries sustain due to the extraction of natural resources and environmental damage inflicted upon northern countries. Another dimension, the temporal dimension, concerns the environmental debts that current generations owe to their predecessors. That means past generations are culpable for overuse of natural resources and mismanagement. The debt issue is complex, despite many mechanisms to resolve it. Most important are the recently introduced environmental bonds, an important step forward in the field of sustainable financing of environmental debts.

It’s not (only) personal, it’s business: personal bankruptcy exemptions and business credit

Abstract In the USA, state-level exemptions determine the amount of property that individuals can protect from creditor liquidation during the debt settlement process. We exploit within-metropolitan statistical area variation in personal bankruptcy exemptions created by state borders and a stacked regression approach to identify the spillover effects of these laws on business credit extended to small firms. Subsequent to exemption increases, we find a reduction of 1–2 percent in originations of business credit. The effect is strongest for the smallest firms, which are more financially constrained. We provide household-level evidence that both business debt and personal debt decline for borrowers whose home equity becomes covered by the exemption, suggesting an overall decrease in credit availability for small businesses. As a result, increases in exemptions lead to fewer small establishments and lower employment, especially in industries dependent on external finance, suggesting that negative real economic effects occur via a credit market channel.

A Fresh Start or a False Dawn? Assessing the Crime-Preventive Effect of Debt Settlements for People With a History of Conviction

A Fresh Start or a False Dawn? Assessing the Crime-Preventive Effect of Debt Settlements for People With a History of Conviction

Analisis Penerimaan Dana Kredit Usaha Rakyat (KUR) Pada UMKM pada PT. Bank BRI Unit Tapa Kota Gorontalo

This research aims to find out whether there is an impact on providing people's business credit (KUR) to MSMEs at PT. Bank Rakyat Indonesia (Persero) Tbk. Tapa Unit Gorontalo Branch Office. This research uses qualitative methods with the data sources used, namely primary and secondary data. The data collection techniques used were observation, interviews and documentation. The object of this research is an analysis of the provision of people's business credit (KUR) funds to PT. BRI bank unit tapa Gorontalo city. The results of the research show that there is an assessment of the character of prospective customers at Bank BRI Tapa unit which is intended to determine the candidate's honesty and good faith in paying off or returning the loan, so that it will not cause difficulties for the bank in the future. The relationship between credit giver and credit recipient is a mutually beneficial cooperative relationship with the credit giver's trust in the credit recipient based on the credit recipient's credit rating. The procedures for granting and assessing credit by the banking world between the BRI Tapa unit and other banks are not much different. The difference may only lie in the procedures and requirements established with individual considerations. Settlement of bad debts in KUR credit at Bank BRI Unit cannot be resolved non-litigationally because Kur itself is a program from the government to make it easier for people who want to do business.

Institutional model of the financial services market and its development

In the paper, the institutional model of the financial services market in Ukraine is defined as a complex system that ensures the interaction of its various subjects, regulates their activities and contributes to the stable and effective functioning of the financial sector based on taking into account the role and relationships of public and private organizations, legal and regulatory frameworks, as well as socio-economic factors that affect the functioning of the financial services market. Three stages of the development of the financial services market in Ukraine are highlighted, their characteristics, achievements and challenges are given. The main components of the institutional model of the financial services market are defined. It is shown that high-quality infrastructure and effective debt settlement institutions are critical for maintaining the financial stability of credit institutions. The purpose of the reform of state regulation based on the model of a single regulator is determined, which consists in increasing the efficiency, transparency and stability of the financial market. The advantages of a single regulator based on the NBU are: consolidation of functions, improvement of efficiency, reduction of administrative costs, improvement of coordination, increase of transparency, reduction of duplication. The challenges are: the difficulties of the transition period, the need to maintain specialization and the implementation of management changes. It is shown that the financial ombudsman plays an important role in the system of institutions for professional regulation of financial services markets. At the initial stage of implementation of the said institute, its role as a mediator is critically important for creating an effective mechanism for resolving conflicts and ensuring trust in the financial market. It has been established that the financial ombudsman performs the functions of: an independent mediator based on the principles of neutrality and confidentiality; supports the resolution of conflicts based on the analysis of the situation and the proposal of solutions, improves communication by organizing meetings and ensuring a clear exchange of information; ensures transparency and fairness by clarifying rights and obligations, creating standards for mediation; increases confidence in the financial market on the basis of reducing conflicts and improving the reputation of the financial market.

The Mistaken Implementation of the Destination Principle to the Value-Added Tax Collection Partners of State-Owned Enterprises (The Study of Case Number 1263/PID.SUS/2019/PN.JKT.PST and 678/PK/PID.SUS/2023)

MAS's first instance decisions in sentenced him to prison and fined him for violating Article 39 paragraph (1) letter i of Law Number 16 of 2009 and acknowledged his VAT debt settlement. At the judicial review level, the criminal fine of 3 times the VAT owed was not proportional (double jeopardy) and the VAT was overpaid, and the Prosecutor was ordered to return it to the defendant MAS, but the person was still criminally guilty. Additionally, the value-added tax law extends the destination principle to state-owned firms. The analysis shows that the defendant MAS's actions constitute administrative tax acts due to the broadening of the destination principle in Article 16A of Law Number 42 of 2009.

Rapid credit expansion and firm behavior: A case study from Türkiye

This study examines the impact of a sudden and remarkable credit expansion experienced in Türkiye during the first half of 2022 on firm behavior by utilizing a novel dataset containing the universe of all incorporated firms in Türkiye. The results of the combination of coarsened exact matching and difference-in-differences methodology show that, amid the credit expansion coupled with the deterioration in expectations of inflation and depreciation in local currency, the firms with higher credit usage tended to engage in alternative channels rather than undertaking real economic activities in short term, such as pulling-forward imports and input demand and taking position against local currency to gain financial profit more than those with less credit usage during the first half of 2022. While SMEs with higher credit usage increased their imports, domestic input purchases, foreign currency purchases, and foreign currency-denominated debt settlement before maturity, large firms increased their foreign currency purchases relative to their counterparts with less credit usage.

Improving project management “closeout” phase outcomes: evidence from a large general contractor in Iran using “X-inefficiency theory”

PurposeOptimal clean-up procedures lie at the heart of the closeout phase of construction projects under contract law. However, due to its complexity involving multiple issues, potentially unfulfilled contractual obligations, performance claims and counter-claims, combined with consequently deteriorating stakeholder relationships, the management of closeouts is fraught with difficulties leading to suboptimal outcomes. This is particularly true where general contractor (GC) organizations do not have a claims management office (CMO) dedicated to improving such suboptimal clean-up outcomes. Thus, this study aims to develop a model by which CMOs’ may effectively manage the clean-up phase in an environment of closeout claims.Design/methodology/approachX-inefficiency theory was utilized as the theoretical lens guiding this study. The theory helps identify closeout strategies implemented by a GC, which manages completion claims through a CMO. Data were received and analyzed from a large GC, which served as the firm case study. In this case, managing the closeout completion claims was the main function of the CMO.FindingsThe average delay of closeout completion was four times greater than construction phase delays. The GC results highlighted the “economic destruction tsunami of projects,” as a root cause for these completion delays. Wrap-up activities under contract law are identified, including within the domains of statements of completion, project handover and debt settlement. Behavior strategies are also defined, including relational and contractual approaches. Moreover, a process for improving closeout claim performance is described, comprising project closeout identification, rational intra-firm behavior, closeout completion and program closeout practice.Originality/valueFindings from this work can significantly contribute in X-inefficiency theory in relation to how a decrease of X-inefficiency will lead to better closeout claim performance. It also offers practical insights into how best to minimize delayed closeout completion while providing valuable lessons for stakeholders in complex infrastructure projects. Further, a model is developed that may be utilized by owners, consultancies, designers and other contractor organizations in an effort to improve closeout claim performance.

Relationship between payment problems and health: A nation-wide register study in Norway.

Previous studies have found a solid correlation between payment problems and health, and a large body of literature has recognised the impact of debt burden on ill health. However, few have looked at the reversed causality-the impact of health on over-indebtedness and payment problems. In this article, we investigate whether or not a person with mental and physical health challenges is more likely to experience debt enforcement, and we take a step further to explore the role of health status on receiving debt settlement for those with severe payment problems. The article uses register data from Statistics Norway, the Norwegian Patient Registry and the Mortgages Registry from 2009 to 2018. When using conditional logistic models and fixed-effects Poisson regressions with a one-year lagged effect, we find that mental disorders significantly contribute to individuals' financial strains, while physical health does not play a substantial role. When integrating the models with dynamic health effects, all health indicators turned out to have substantial impacts, indicating an extended delayed physical health effect on financial outcomes. Poor health leads to increased payment problems, yet individuals facing health challenges have a lower likelihood of receiving necessary assistance in debt settlement. These findings emphasise the need for tailored services to address the financial challenges of debtors with diverse health conditions.

The Legal Perfection of the System of Executors in Estate Management

The newly added estate administrator system in the Civil Code holds significant importance in preventing improper estate management, resolving inheritance disputes, and protecting the interests of relevant parties. However, the general and principle-based nature of this system has posed challenges in judicial practice, revealing its shortcomings and inability to meet the needs of current legal relationships. Therefore, it has become an urgent task to supplement and modify this system. In order to improve the estate administrator system, several aspects can be considered for reflection and improvement. Firstly, it is necessary to clarify the independent legal status of estate administrators and have their rights granted by notary institutions. Secondly, provisions should be added regarding the entities responsible for compiling estate inventories, time limits, contents, reporting recipients, and handling objections. Additionally, establishing procedures for public notice and declaration of creditors' claims and specifying the procedures for debt settlement are crucial. Lastly, it is important to consider introducing provisions for terminating estate administrator duties in two specific situations.

Certain measures aimed at the extrajudicial settlement of overdue debt: a case study of the USA

Certain measures aimed at the extrajudicial settlement of overdue debt: a case study of the USA

Adapting to the Digital Revolution: The Transformative Impact of the Fourth Industrial Revolution on Debt Payment

Within the context of the global economy, this research delves into the profound impact of the Fourth Industrial Revolution (4IR) on the dynamics of debt payments. The convergence of Artificial Intelligence (AI), Internet of Things (IoT), and blockchain technology is reshaping how nations approach debt settlements. This study investigates the transformation of international lending and borrowing practices as the 4IR continues to revolutionize trade among developing countries. Employing a comprehensive analysis spanning sixteen years, this paper combines quantitative data on 4IR adoption measures and economic indicators with a qualitative examination of prior research. The investigation explores a significant correlation between the 4IR and foreign debt payments. With the convergence of 4IR technologies, countries can bolster their production competitiveness, stimulate trade volume, and attract foreign investors. Nevertheless, this study also uncovers other aspects related to the 4IR. Rapid technological advancements have exacerbated existing debt inequalities, creating disparities between technologically advanced and less-developed countries.

The Political Economy of Privatization by Debt Settlement Method

The Political Economy of Privatization by Debt Settlement Method

KEPASTIAN HUKUM EKSEKUSI JAMINAN PERORANGAN (PERSONAL GUARANTEE) ATAS PENYELESAIAN KREDIT MACET BANK MELALUI PERANGKAT KEPAILITAN

Aspects of legal certainty in the context of the execution of personal guarantee against the settlement of bad loans through the institution of bankruptcy. The main focus of the study was to analyze the legal framework that governs the process of execution of guarantees of individuals when banks face bad debts and decide to use the bankruptcy mechanism. Through a legal approach and comparative analysis, this study highlights the obstacles that may arise in ensuring legal certainty in this process, as well as the implications for the parties involved, this study raises the issue of how the limitation of the individual guarantor (Personal Guarantee) to be responsible for the settlement of bad debts secured debtors and how the legal certainty of the execution of the guarantee of individuals (Personal Guarantee) on the settlement of bad debts through the bank insolvency institution?using Gustav Radburch's theory of legal certainty and Hans Kelsen's theory of legal responsibility. The research methodology employed in this study is normative juridical research, which combines interviews with library law research utilizing primary, secondary, and tertiary legal sources. The research approach encompasses the Statute Approach, Conceptual Approach, Analytical Approach, and Case Approach. The technique used to gather legal materials involves identifying and cataloging positive legal rules, literature books, journals, and other relevant legal sources. The analysis of legal materials involves legal interpretation, systematic interpretation, and legal construction methods. Hasil Penelitian ini adalah Personal Guarantee bertanggung jawab atas pembayaran hutang kepada Kreditur jika Debitur wanprestasi, dan pertanggungjawaban tersebut terpenuhi selama Personal Guarantee mampu. Jika tidak mampu lagi, seperti saat harta sudah habis atau pailit, langkah selanjutnya adalah menunjuk penanggung baru atau mengganti dengan jaminan kebendaan. The result of this study is that the Personal Guarantee is responsible for the payment of debts to creditors if the debtor defaults, and the responsibility is fulfilled as long as the Personal Guarantee is capable. In case of incapacity, such as when the property is exhausted or insolvent, the next step is to appoint a new insurer or replace it with a material guarantee and the Personal Guarantee liability can be distinguished: which does not renounce its privileges, allows demands or execution after the debtor's property has been confiscated or sold for payment of the debtor's debt; while waiving its privileges, it allows creditors to demand accountability or direct execution of the Personal Guarantee and the position of the Personal Guarantee can change like a debtor when the debtor it guarantees defaults, allowing the Personal Guarantee to be terminated by bankruptcy under certain conditions. Through this bankruptcy institution, creditors can demand Personal Guarantee liability in the settlement of bad debts of secured debtors. This provides legal certainty for creditors

Upaya Penyelesaian Kredit Macet Dana Bergulir di Unit Pengelola Kegiatan (Upk) Kecamatan Jeumpa Kabupaten Aceh Barat Daya

Savings and loans revolving fund PNPM Mandiri Rural in the UPK Jeumpa District, Aceh Barat Daya Regency has been running since 2009 until now, but in its implementation many loans are experiencing bottlenecks because the borrower group does not use the loan in accordance with the agreement letter.The purpose of this study was to determine the efforts to resolve bad loans and the obstacles in the settlement of non-performing loans in revolving funds at the UPK Jeumpa District, Southwest Aceh Regency. This research is an empirical juridical research using descriptive analysis method that describes efforts to resolve bad loans.The results of this study indicate that the settlement of bad debts is carried out by the following mechanism, arrears in the first month are given a verbal warning to the group leader, if the first method does not work then a warning letter will be given three times in a row and if the debtor still does not have good intentions To pay off the credit, the UPK will make efforts to save the credit, namely the confiscation of the collateral. Furthermore, a negotiated settlement is carried out for debtors who have good intentions, namely by providing credit relief by extending the loan period. As for the obstacles in resolving bad loans, there are debtors who have bad intentions who intentionally do not complete their credit payments, the spread of the Corona Virus which has an impact on the community's economy, business failures that result in debtors having difficulty completing their loans, and the UPK's lack of firmness in imposing sanctions on debtors. or groups of borrowers who are in arrears, so that the debtor ignores the sanctions.Suggestions for the Activity Management Unit (UPK), to be more thorough, careful and careful in choosing groups to be given loans, and to collect regularly, in an effort to settle bad loans, the UPK should be more strict with debtors who violate the agreement by providing heavier sanctions so that the debtor feels deterred. And for the Women's Savings and Loans group (SPP) it is expected that they fulfill the agreements that have been made and mutually agreed upon so as not to cause problems in the future.

CURATORS ARE VULNERABLE TO BE CRIMINALIZED AND CRIMINATED IN BANKRUPTCY AND PKPU PROCESSES

<p>The Curator is one of the important organs in the debt settlement process between debtors and their creditors through bankruptcy law instruments. Based on Law Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (PKPU), the Curator is given broad and broad duties and powers in managing and settling the assets of a bankrupt debtor. Because since being declared bankrupt by the court, the debtor has lost his right to manage his business and assets. The duties and authorities to administer the business and assets of the bankrupt debtor rest in the hands of the Curator, who works under the supervision of the Supervisory Judge. In carrying out its duties and authorities, the Curator must adhere to the provisions of the Law and the Professional Code of Ethics, namely being independent, having no conflict of interest and not handling more than 3 (three) Bankruptcy and PKPU cases. If in carrying out its duties and authorities it causes damage to the bankrupt assets, then the Curator must be legally responsible. That means, the Curator does not have the right of immunity or impunity in carrying out his duties and authorities to manage and settle bankruptcy assets in accordance with the provisions of the law. The Curator is not a public official. The Curator may be punished if his actions and decisions in administering and settling the bankrupt assets cause harm to the bankrupt assets. However, Law Number 37 of 2004 concerning Bankruptcy and PKPU does not include criteria for criminal acts and criminal sanctions for Curators. Because of this, Curators are vulnerable to being criminalized and punished.</p><p>The Curator is one of the important organs in the debt settlement process between debtors and their creditors through bankruptcy law instruments. Based on Law Number 37 of 2004 concerning Bankruptcy and Postponement of Debt Payment Obligations (PKPU), the Curator is given broad and broad duties and powers in managing and settling the assets of a bankrupt debtor. Because since being declared bankrupt by the court, the debtor has lost his right to manage his business and assets. The duties and authorities to administer the business and assets of the bankrupt debtor rest in the hands of the Curator, who works under the supervision of the Supervisory Judge. In carrying out its duties and authorities, the Curator must adhere to the provisions of the Law and the Professional Code of Ethics, namely being independent, having no conflict of interest and not handling more than 3 (three) Bankruptcy and PKPU cases. If in carrying out its duties and authorities it causes damage to the bankrupt assets, then the Curator must be legally responsible. That means, the Curator does not have the right of immunity or impunity in carrying out his duties and authorities to manage and settle bankruptcy assets in accordance with the provisions of the law. The Curator is not a public official. The Curator may be punished if his actions and decisions in administering and settling the bankrupt assets cause harm to the bankrupt assets. However, Law Number 37 of 2004 concerning Bankruptcy and PKPU does not include criteria for criminal acts and criminal sanctions for Curators. Because of this, Curators are vulnerable to being criminalized and punished.</p><p><strong><br /></strong></p>

External public debt management during the wartime: Case of Ukraine

Public debt plays a crucial role in the economic development of many countries, the effective management and servicing of the external public debt have become a priority in the financial and economic policy of the state, ensuring the stability of its development. The article aims to develop Ukraine’s external public debt management system during the wartime. As a result of the analysis, the key negative consequences of the impact of external debt growth on Ukraine`s economic security were determined, i.e. economic growth slowdown, increased dependence on creditors, increased costs of the public debt servicing, significant reduction in domestic consumption, etc. The developed external public debt management system in the framework of state economic and financial security includes relevant subsystems, principles, functions, objects and subjects, methods. It was substantiated that the appropriate external public debt management system during wartime in Ukraine requires the following additional subsystems: subsystem of crisis planning and response, subsystem of external debt settlement and subsystem for ensuring international cooperation.

The Forgotten History of Bankruptcy, 1543–1624

ABSTRACT This article examines the foundations of bankruptcy law in England. Rather than looking at the bankruptcy statutes that were aimed at fraudulent insolvent debtors, it analyses debt settlements of honest insolvent debtors awarded by the court of Chancery between 1543 and 1628. It shows that these agreements were not only aimed at relieving creditors, but also financially rehabilitated debtors if they had become insolvent for reasons beyond their own control. Most debt settlements in the period were awarded following a bill of conformity procedure, in which a minority of creditors could be forced to agree to a settlement. Up to 1621 it was standard practice for debt settlements to include financial rehabilitation. The Chancery ordered delay of payment, part and full discharges of debts or alternative payment plans. Political struggles and fraudulent practices in the early 1620s ended this highly pragmatic practice, which was only to be restored centuries later.

Restructuring as a form of settlement of problematic credit debt of banking institutions

Definitions of credit debt restructuring of banking institutions provided in several legal acts are summarized. They are reduced to changing the essential conditions of the current credit agreement to soften the requirements for the borrower in connection with his financial difficulties, the need to create favorable conditions for him to fulfill his credit obligations. The objects of restructuring under the credit agreement are: interest rate; forgiveness of part of the debt; his debt repayment schedule; terms and amounts of repayment of the main part of the loan, fees, etc. Restructuring of the bank is defined as a set of measures aimed at improving the financial condition, increasing the liquidity and solvency of the bank, carried out in the form of reorganization of the bank, change of owner, management, acceptance of debt obligations by the investor, rehabilitation, merger, division, merger, absorption at the stage, that precedes the recognition of the bank as bankrupt and the NBU's decision to liquidate it. Objects of restructuring can be: bank, enterprise, borrower's debts, tax debt, debt obligations, investment project, tax debt, debt obligations for borrowing, debt for issuing bonds. Restructuring of problematic credit debt is a type of restructuring of the borrower's debts by concluding an additional agreement with the borrower, settlement agreement, financial restructuring. The latter is the most common and is a form of economic recovery of borrowers who are in critical financial condition; changes in the conditions and repayment terms of credit obligations; ensuring borrowers' access to financing to restore their economic activity. Subjects and forms of financial restructuring are systematized. The essence of financial restructuring as an out-of-court procedure through negotiations between the borrower, his related persons and involved creditors is determined. The conditions for the borrower's participation in financial restructuring have been diagnosed, and the mechanisms for its initiation and implementation have been formalized. The responsibilities of the borrower in terms of the development and implementation of the restructuring plan are described.

IMPLEMENTATION OF THE SEVERANCE PAYMENT AGREEMENT FOR EMPLOYEES OF PT. GADING BHAKTI

PT. Gading Bhakti, a private company and subsidiary of PT. Mapoli Raya, operates in the palm oil plantation and processing industry. In 2021, PT. Mopli Raya, its parent company, was declared bankrupt under Decree Number 17/pdt-SUS-PKPU/2020/PN.Niaga Medan and Law No. 13 of 2003, Employment Article 95 paragraph 4, mandating debt settlement as a priority for bankrupt companies. Despite this, PT. Gading Bhakti failed to fulfill debt payments to 25 retired employees, resulting in the non-payment of their post-employment benefits. The research aims to investigate the implementation of the severance payment agreement by PT. Gading Bhakti and the company's measures to meet its obligations toward employee severance. The research methodology employed was the empirical juridical method, observing ongoing events and directly examining PT. Gading Bhakti's implementation of the severance payment agreement. Furthermore, the study explores the company's attempts to fulfill the severance payment for its employees. Regrettably, the implementation of the agreement resulted in a breach of contract, with severance payments not being duly honored. Various efforts were made, including rescheduling the agreement and submitting severance payment documents. On the other hand, the employees sought resolution through verbal warnings, mediation, media involvement, and seeking assistance from relevant authorities concerning the unclear situation of severance payments for PT. Mapoli Raya's ex-employees (PT. Gading Bhakti being its subsidiary). In conclusion, the study highlights the challenges faced by retired employees in receiving their post-employment benefits and the need for PT. Gading Bhakti to effectively fulfill its obligations regarding severance payments.