Debt Settlement Research Articles

PENYELESAIAN UTANG IMPOR, JU’ALAH DAN SERTIFIKAT BANK INDONESIA SYARIAH (SBIS) PERSPEKTIF FATWA DSN-MUI

Sharia financial Institution is one of the economic supporters of Indonesia. It is evidenced by the number of Islamic financial institutions that have sprung up this year, both sharia bank and non-bank sharia financial institution. It accommodates the aspiration and need of the society. The public is given the widest opportunity to establish a bank based on sharia principles, including convert from commercial banks whose business activities are based on conventional patterns into sharia patterns. The more sharia financial institutions that emerge, the more products offered by Islamic financial institutions to customers with the level of risk that can be overcome. The writing aims to answer the formulation of problem of settlement of import debts, contract of ju’a>lah and Sharia Certificate of Bank Indonesia (SBIS) in perspective of DSN-MUI fatwa. The result of research shows that in the DSN-MUI fatwa, it is explained that the settlement of imported debt or we know as letter of credit (L/C) may use the kafa>lah contract by taking a fee. It is also explained that one of the forms of kafa>lah contract is kafa>lah bi al-ma>l which is the application of kafa>lah contract which guarantees the payment of goods or debt repayment. This guarantee may be provided by the sharia bank to its customers in return for a fee. For the settlement of import debt there are several contracts that can be used, namely the contract of h}iwa>lah bi al-ujrah, waka>lah bi al-ujrah, and kafa>lah bi al-ujrah The Sharia Certificate of Bank Indonesia which used to be wadi>’ah with Wadi>’ah Certificate of Bank Indonesia which is now changed with Sharia Certificate of Bank Indonesia uses ju’a>lah contract. In this contract, Bank Indonesia pays the repayment upon maturity of SBIS with the relevant sharia banking record having performed and achieving the objectives expected by Bank Indonesia. If the sharia banking concerned is not able to achieve the desired objectives or stipulated by Bank Indonesia in terms of monetary control based on sharia principles, the relevant sharia banking will not receive any compensation from Bank Indonesia.

Penyelesaian Utang Impor, Ju’alah Dan Sertifikat Bank Indonesia Syariah (SBIS) Perspektif Fatwa DSN-MUI

Sharia financial Institution is one of the economic supporters of Indonesia. It is evidenced by the number of Islamic financial institutions that have sprung up this year, both sharia bank and non-bank sharia financial institution. It accommodates the aspiration and need of the society. The public is given the widest opportunity to establish a bank based on sharia principles, including convert from commercial banks whose business activities are based on conventional patterns into sharia patterns. The more sharia financial institutions that emerge, the more products offered by Islamic financial institutions to customers with the level of risk that can be overcome. The writing aims to answer the formulation of problem of settlement of import debts, contract of ju’a>lah and Sharia Certificate of Bank Indonesia (SBIS) in perspective of DSN-MUI fatwa. The result of research shows that in the DSN-MUI fatwa, it is explained that the settlement of imported debt or we know as letter of credit (L/C) may use the kafa>lah contract by taking a fee. It is also explained that one of the forms of kafa>lah contract is kafa>lah bi al-ma>l which is the application of kafa>lah contract which guarantees the payment of goods or debt repayment. This guarantee may be provided by the sharia bank to its customers in return for a fee. For the settlement of import debt there are several contracts that can be used, namely the contract of h}iwa>lah bi al-ujrah, waka>lah bi al-ujrah, and kafa>lah bi al-ujrah The Sharia Certificate of Bank Indonesia which used to be wadi>’ah with Wadi>’ah Certificate of Bank Indonesia which is now changed with Sharia Certificate of Bank Indonesia uses ju’a>lah contract. In this contract, Bank Indonesia pays the repayment upon maturity of SBIS with the relevant sharia banking record having performed and achieving the objectives expected by Bank Indonesia. If the sharia banking concerned is not able to achieve the desired objectives or stipulated by Bank Indonesia in terms of monetary control based on sharia principles, the relevant sharia banking will not receive any compensation from Bank Indonesia. Keywords: Import Debt Settlement, Ju’a>lah, Sharia Certificate, Bank Indonesia, DSN-MUI Fatwa

ASAS KELANGSUNGAN USAHA SEBAGAI LANDASAN FILOSOFIS PERLINDUNGAN HUKUM BAGI DEBITOR PAILIT SEHUBUNGAN TIDAK ADANYA INSOLVENCY TEST DALAM PENYELESAIAN SENGKETA KEPAILITAN

In its development, the Bankruptcy Law in theory and practice did not progress significantly and it was until 1998 and replaced by a new one, which on October 18, 2004 legalized bankruptcy law and postponement of debt obligations have a wider scope, this is necessary because of the development and legal needs in the community while the provisions that have been applied is not sufficient as a legal means to solve the problem of accounts receivable in a fair, fast, open, and effective. One of them concerning the requirement to declare a bankrupt debtor as stipulated in the provisions of Article 2 paragraph 1 that there is no provision that requires the debtor to be insolvency, this is certainly contrary to the universal philosophy of the Bankruptcy Act that provides a way out for debtors and creditors when the debtor is in a state unable to pay its debts. The absence of this insolvency test shows that the Bankruptcy Act is dominant in protecting the interests of creditors. In order to have a clear philosophical foundation, the concept of business continuity principles should be included in the future Article of Bankruptcy Regulation so as to enable debtor and creditors to pursue debt settlement fairly, quickly, openly and effectively. The type of research in the writing of this journal is prescriptive normative legal research.

Insolvency within Bankruptcy: The Case in Indonesia

The Bankruptcy institutions are an extraordinary mechanism in debt settlement. The extraordinary characteristic distinguishes bankruptcy institutions with other mechanisms in debt settlement. This particular characteristic stems from the debtor’s inability to pay all of his debts due. However, two of the Indonesian bankruptcy laws do not include insolvency conditions as the basis for granting bankruptcy status to the debtor. Such legal politics resulted in the use of bankruptcy institutions deviated from their philosophy and vulnerable to abuse. With a post-positivist approach, this paper examines the position of insolvency tests on bankruptcy institutions, why insolvency tests are not carried out in Indonesian bankruptcy law, and how to place insolvency tests in Indonesian bankruptcy law. This study concludes that test insolvency is an essential element of bankruptcy institutions. Without insolvency tests, the bankruptcy institutions lose its raison d’etre. Proving that the debtor in insolvent condition cannot be done easily, so that Insolvency test is not used as a condition in granting bankruptcy status for debtors in Indonesia. Insolvency tests should serve as the basis for granting bankruptcy status to debtors by setting aside the principle of simple evidentiary systems. Thus, only by applying insolvency tests of bankruptcy institutions work properly.

ПІДСТАВИ ВІДКРИТТЯ ПРОВАДЖЕННЯ У СПРАВІ ПРО НЕПЛАТОСПРОМОЖНІСТЬ ФІЗИЧНОЇ ОСОБИ ЗА ЗАКОНОДАВСТВОМ УКРАЇНИ І НІМЕЧЧИНИ

The article examines the grounds for initiating individual insolvency proceedings, which are regulated by Ukrainian and German law, as well as current positions of judicial practice in this area. Proposals are made to improve the provisions of the Bankruptcy Code of Ukraine and the Law of Ukraine «On Judicial Fees», which will have a positive impact on the legal regulation of insolvency of individuals and law enforcement practice in this area. It is established that in Ukraine the legislator uses not only the principle of insolvency or threat of insolvency to open an insolvency of a citizen, as is the case with a legal entity, but also payment inability. The author notes that using the principle of insolvency, the Ukrainian legislator in one case indicates the minimum amount of debt, and in another sets only the terms of suspension of payments and the minimum percentage of arrears, and in determining the threat of insolvency and payment inability does not provide any quantitative and qualitative characteristics. It is suggested that debtors must have the property in necessary amount to cover court costs when initiating insolvency proceedings. It is proposed to establish a court fee for filing an application for insolvency proceedings, differentiating its size depending on whether the individual debtor has the status of an individual-entrepreneur. It is noted that under German law, the procedure of insolvency of individuals may be opened at the request of both the debtor and the creditor. It is established that the opening of individual insolvency proceedings in Germany is possible only if there are additional grounds, such as: unsuccessful attempt of pre-trial settlement of debt within six months before the filing of the application for initiation of proceedings; availability of a certificate issued by a special entity and certifying a failed attempt of a pre-trial settlement; submission of an application for discharge from residual debt or an application for refusal of such discharge.

Thought of Modern Chinese Family Enterprise Troubled Debt Restructuring Institution and Contemporary Significance

The troubled debt restructuring of enterprises not only is a very important theme in current Chinese economic development, but also has been the extremely key issue in both practice and theory aspects in modern China, so the exploration of thought of modern Chinese family enterprise troubled debt restructuring institution has both contemporary significance and historical value. Unfortunately, most of existing studies remain at the elaboration of specific historical processes and the examination of some historical concepts, but lack systematic pectination and interpretation of troubled debt restructuring institution. From the perspective of history of economic thoughts, this paper has a thorough investigation on the origin, system design and evolution of troubled debt restructuring of modern family enterprises. It comes to the conclusions as follows:firstly, the propagation and application of the thought of western bankruptcy discharge in the late Qing Dynasty accelerated the transition from Chinese traditional debt settlement institution to modern troubled debt restructuring institution, and laid a foundation for the implementation of troubled debt restructuring institution in family enterprises; secondly, Confucian ethics plays an important role in the formation and development of modern family enterprise debt restructuring institution; thirdly, the thought of modern Chinese family enterprise troubled debt restructuring institution has experienced three stages in general, namely enterprise-leading, bank-leading and trust company-leading, and these changes imply a process from prematurity to maturity. This paper provides not only a more complete picture for the understanding of modern Chinese family enterprise troubled debt restructuring institution, but also historical significance for current enterprise debt restructuring practice in aspects like how to defuse moral hazard, improve the efficiency of capital use and strengthen the effect of debt restructuring.

Leveraging on Religious and Ethical Aspects in Marketing Takaful Products- Malaysian Experience

Takaful serves as an alternative for the Muslims to fulfill their insurance needs in a Shariah compliant manner. Participating in a takaful scheme, while aimed mainly at gaining protection against the risks, could also be perceived as a scheme of mutual help. The religious and ethical aspects of takaful can be an attractive value proposition to the people especially Muslims, as in Islam helping those in need with sincere intention for the sake of Allah is an act of piety rewarded by Him. Apart from the inherent spiritual distinctive feature of takaful, takaful products might also provide for other religious contentment. Some takaful products cover debt settlement for the deceased, payment for outstanding zakat, execution of charitable donation or waqaf and even providing for the performance of hajj, which are religiously of tremendous values for the deceased. All these features could be attractive marketing points for takaful especially among the Muslims. This study focuses on the religious and spiritual dimensions of takaful products and explores on the experience of a group of takaful agents of a selected takaful operator in marketing their products by leveraging on these aspects.

Default premium

The literature has found that sovereigns with a history of default are charged only a small and/or short-lived premium on the interest rate warranted by observable fundamentals. We re-assess this view using a metric of such a “default premium” (DP) that nests previous metrics and applying it to a much broader dataset. We find a sizeable and persistent DP: in 1870–1938, it averaged 250bps upon market re-entry, tapering to around 150bps five years out; in 1970–2014 the respective estimates are about 350 and 200bps. We also find that: (i) the DP accounts for between 30 and 60% of the sovereign spread within five years of market re-entry, and its contribution to the spread remains non-negligible thereafter; (ii) The DP is higher for countries that take longer to settle with creditors and is on average higher for serial defaulters; (iii) our estimates are robust to many controls including realized “haircuts”. These findings help reconnect theory and evidence on why sovereigns default only infrequently and, when they do, why earlier debt settlements are typically sought.

TRADISI NGUTANG DI PASAR TRADISIONAL (Studi di Pasar Tradisional Gunungpati)

The traditional market is an important place in the life of the Java community. For society, the market not only as a meeting place for sellers and buyers, but also as a forum for social interaction and representation of traditional values indicated by market actors (traders, buyers and banks thithil / renten). The actors in offering their goods prioritizing personal approach and familial / social networking. Established market atmosphere is not just a formal relationship of buying and selling between sellers and buyers, but more than that, that they greet each other and chat. So for the people shopping at a crowded market and not too clean it into the enjoyment of life of its own. Capital constraints for traders to be one of a phenomenon that is addressed to "ngutang". On the other hand not a few traders in traditional markets by way of its trading strategy are debted. What is interesting how the tradition owe both by traders and buyers as well to whom they debt.This is Qualitative research with phenomenological approach. Collect data with interview techniques. The results showed that the tradition of debt for the traditional market actors Gunungpati done with some motive or model. First group owe a shopper to traders in the market. In this group, in fact the buyer does not merely want to owe. Debt settlement, the traders wait for repayment by the buyer. The second group, the debt carried by traders to moneylenders / bank thithil. Capital constraints often encourage traders to seek additional capital. Their interest in debt to loan sharks, although the excess returns occur because of several motives, among other things, increase business capital, join friends / tempted by the offer attractive, need urgent funds for other purposes. While the model of the solution is the moneylenders who seized merchandise, no patient by giving time. Instead models of debt repayment by merchants a variety of characters, there is the discipline to pay any bank thithil paramedics came. There are “endo”/ evoid with unsold merchandise reason. Finally been booked to trust banks thithil real customers also remedy immediately pay off, not rare bicker.

Consumer Insolvency Law in Estonia and Norway: Comparative Aspects

The authors examine and compare the rules on consumer insolvency in Estonia and Norway. Under Estonian law, consumers may obtain debt adjustments under the 2003 Bankruptcy Act (in the form of a debt release) or under the 2010 Debt Restructuring and Debt Protection Act (in the form of debt restructuring). These two acts apply to both entrepreneurs and consumers. In Norway, a Debt Settlement Act was introduced in 1992, allowing for debt settlements for consumers. Debt adjustment under general insolvency legislation is not regarded as a viable option for consumers in Norway, it being a rather costly and cumbersome procedure. In Norway, each municipality is obliged to offer debt counselling services to consumers, while in Estonia, debt counselling services are available through non-governmental organization (NGOs) and through some municipalities on a voluntary basis. The number of instituted proceedings for debt settlements (Norway) and for debt restructuring (Estonia) are relatively low: in 2014, the numbers stood at 57 per 100 000 inhabitants in Norway and 2 per 100 000 inhabitants in Estonia. The difference between the two countries may to some extent be explained by differences in legislation and in organization of debt counselling, but the authors conclude that the explanation must probably be found also in cultural, sociological and political factors.

Helping Without Caring

Research on emotional labor has shown that workers who are required to feign emotions are more likely to suffer ill effects than those who are able to deep act their emotions. The authors argue that what may stand between surface and deep acting is workers’ ability to claim the kind of socially valued role that makes their enactment of emotional display rules seem consistent with that role. The authors draw on observations and interviews with workers in the debt settlement industry to show that men who were agents were able to claim that they were educating clients rather than selling to them. This made it possible for them to avoid feeling that they were taking advantage of customers who might have been better off without the service they sold them. Men were able to help clients in a way that did not conflict with their role as salespeople. Women agents, by contrast, were not able to style themselves educators. Instead, clients and employers expected them to adopt a therapeutic role with their clients. However, this role conflicted sharply with the expectation that agents be effective salespeople and forced women agents to feign feelings of care and optimism. Clients, coworkers, and employers, the authors show, shaped workers’ freedom to define their emotional labor in satisfying ways.

英米戦債協定の成立とイギリス外交、一九二〇―一九二三年

英米戦債協定の成立とイギリス外交、一九二〇―一九二三年

Rural Indebtedness in India and its Consequences

paper has focused on extent of rural indebtedness. Indebtedness has been increased over the decadesamong the most of the states except Gujarat, Haryana, Madhya Pradesh, Chhattisgarh and Orissa, either because of huge loans ordue to low income which is not sufficient enough to pay off the Indebtedness is found to be high among cultivators group when compared to that of non-cultivators. Thus, it became a serious problem of Indian farmers. This situation gives proof of a well known saying in the country The Indian Farmer is born in debt, lives in debt and dies in debt. main causes of indebtedness are poverty, ancestral debt, illiteracy and ignorance. harmful consequences of indebtedness are low standard of living, health problem, low productivity, suicides etc. For this problem, government should take suitable remedial measures like settlement of old debt, reduction of dependence on local money lenders, control of new loans etc.

The position of the civil Jordanian code towards the doctrine of performance and subrogation: An analytical and evaluative Study

No general Doctrine of Substitution (Holol) within Civil Code has been provided for by Jordanian Legislature, rather only some particular applications for such a doctrine were provided for explicitly sometimes, such as in Article 309 concerning the settlement of other’s debt, Article 926 concerning insurance or Articles 1355 and 1363 concerning the recourse by the holder of a mortgaged property against the debtor, or implicitly on other occasions, as with Article 980 concerning the recourse of the guarantor against the debtor. Further, Contractual Substitution is unknown under Jordanian Civil Law. The said approach by Jordanian Legislature is against the relevant approaches of most Arab Legislatures, particularly the Egyptian, whereby both forms of Substitution, Legal and Contractual, are known and dealt with in detail under the Egyptian Civil Law. Despite this fact, most of Jordanian jurists still insist to expand the applications of Substitution under Jordanian Civil Law to include such applications provided for under the General Substitution Doctrine within the Civil Law of Egypt, without any legal proxy to support their argument. This study has revealed that Substitution does not take place in the case of the recourse of the Joint Debtor against other Debtors, neither in the case of undividable debt, being unknown concept under Jordanian law, nor in the case of the settlement of debt by a second creditor to a first creditor in mortgage. Substitution of the creditor by the payee of a debt cannot be here presumed, as Substitution is deemed the exception from the general notion in the law that recourse by creditor is based on a personal lawsuit, and so there is no “Substitution without a Provision”. When Subrogation is compared with Contractual Substation under Jordanian Civil Law, it has appeared that both are different systems, albeit some similarity among them exists. Substitution is a consequence of Subrogation (Hewaleh), but not a replacement thereof.

The position of the civil Jordanian code towards the doctrine of performance and subrogation: An analytical and evaluative Study

No general Doctrine of Substitution (Holol) within Civil Code has been provided for by Jordanian Legislature, rather only some particular applications for such a doctrine were provided for explicitly sometimes, such as in Article 309 concerning the settlement of other’s debt, Article 926 concerning insurance or Articles 1355 and 1363 concerning the recourse by the holder of a mortgaged property against the debtor, or implicitly on other occasions, as with Article 980 concerning the recourse of the guarantor against the debtor. Further, Contractual Substitution is unknown under Jordanian Civil Law. The said approach by Jordanian Legislature is against the relevant approaches of most Arab Legislatures, particularly the Egyptian, whereby both forms of Substitution, Legal and Contractual, are known and dealt with in detail under the Egyptian Civil Law. Despite this fact, most of Jordanian jurists still insist to expand the applications of Substitution under Jordanian Civil Law to include such applications provided for under the General Substitution Doctrine within the Civil Law of Egypt, without any legal proxy to support their argument. This study has revealed that Substitution does not take place in the case of the recourse of the Joint Debtor against other Debtors, neither in the case of undividable debt, being unknown concept under Jordanian law, nor in the case of the settlement of debt by a second creditor to a first creditor in mortgage. Substitution of the creditor by the payee of a debt cannot be here presumed, as Substitution is deemed the exception from the general notion in the law that recourse by creditor is based on a personal lawsuit, and so there is no “Substitution without a Provision”. When Subrogation is compared with Contractual Substation under Jordanian Civil Law, it has appeared that both are different systems, albeit some similarity among them exists. Substitution is a consequence of Subrogation (Hewaleh), but not a replacement thereof.

The dangers of borrowing in the age of financialization

This paper looks at how financial problems may occur among households even under favourable economic conditions. Norway is a good case for studying such processes because of its exceptionally stable economy. Based on data on debt settlements in Oslo in 1999, 2004 and 2011 the composition of debt portfolios is investigated as instances of how risk mechanisms operate and change over time. It is demonstrated that the most dangerous and expensive forms of loans and credit are allocated to the most exposed households. The analysis also suggests that during economic upturns, the potentials for a much larger and deeper problem accumulate as households borrow to invest in asset-based welfare. This raises important questions about the market, and challenges the welfare state.

Risiken und Nebenwirkungen

Abstract Historically, the causes and events that have ultimately led to states being unable to service their debts have often been remarkably similar. This article adopts a different perspective and investigates how assumptions about economic uncertainty determine future expectations and influence decision-making in public debt crises. The article explores these questions through an analysis of the postwar shift in the global market for public loans, and the role of financial organizations such as the IMF, theWorld Bank, and the Bank for International Settlements. The findings suggest that the crisis of the 1980s caused the ideas and practices of international debt settlement to be rewritten due to changes made in the market for national-debt instruments, which was established as a direct response to the crisis.

Compensation and Penalty Imposed on Debt Settlement of Islamic Products

As the conventional system has been established ever since, the concept of penalty plays an important role in the conventional system at least to secure the financiers from being manipulated by the financees. However, the classical Muslim jurists prohibited such a type of penalty to be imposed on any Islamic debtbased transaction since it would involve an element of usury (riba). The purpose of this paper is to extend the examination on debt settlement compensation and penalty, and their compliancy with shariah law. The study was then conducted within the ambit of two sacred revelations and the rest of reasoning principles in usulfiqh as well as Islamic legal maxims. The findings show that the compensation (ta’widh) and penalty (gharamah) might be imposed by Islamic financial institutions on early settlement within lock-in period and on delayed payment. In addition, discretional rebate (ibra’) might be given to the early settlement after the lock-in period. The limitation of this study is that it just focuses oncompensation and penalty, and concentrates only on Islamic financial system.

The Gendering of Emotional Flexibility

Research on emotional labor has consistently shown that women’s jobs require the suppression of anger. But in the debt settlement firms we studied, the women who negotiated with creditors were expected to express anger. We show that what made their anger acceptable was that its expression was preceded and followed by positive emotions. Women were praised for their ability to rapidly shift from anger to warmth and back to anger again. But this ability to shift emotional registers was also seen by employers and coworkers as a function of women’s natural emotional plasticity, and was contrasted unfavorably with men’s emotional consistency. What was gendered was not an emotion but an emotional pattern, with the consequence that women’s emotional labor was simultaneously valued and devalued.

DEFAULT RISK OF THE CONSTRUCTION COMPANIES IN RELATION TO THEIR FINANCIAL CONDITION

The construction industry is highly sensitive on economic cycle. So, construction companies have experienced hard times in the crisis period. The aim of the article is to identify, compare and evaluate financial position of companies with different payment habits in the Czech construction industry in the period 2008 – 2012 using individual data and suitable statistical methods (Kolmogorov-Smirnov test at the significance level of α = 0.05). The article also focuses on evaluation of the default risk coming from construction companies. The overall financial condition is analyzed through prediction models IN05 and Altman’s Z Score for emerging markets. Financial ratios of profitability, productivity, liquidity, indebtedness and turnover evaluate separately each area of financial situation. Based on the sample of 3 438 construction companies, the results show that payment habits increase with higher profitability (short-term and long-term), higher liquidity, lower debt ratio and higher liability turnover. Payment habits of construction companies could be better. Frequency analysis shows that 84.12 % of construction companies have proper, above-average or average payment habits with no later than 30 days delay in settlement of debt after maturity. However, 11 % of solvent companies have poor payments habits. Such companies are risky for their suppliers with respect to the secondary insolvency phenomenon.