The Impact of The COVID 19 Pandemic on The Bankruptcy of The Business World
Fatimah Islamy Nasution, Sunarmi, Ningrum Natasya Sirait, Joni Emirzon

Universitas Sumatera Utara

Abstract

The Covid-19 disaster had an economy impact. Several companies went bankrupt because they were unable to meet their debt obligations. Even if there is a debt restructuring policy to tax incentives, the easing is only temporary. Companies that have a small to large scale are severely affected by the Covid-19 pandemic. The fluctuation of termination of employment caused the company to be threatened with bankruptcy. This research method is Empirical Normative Law. The results of the study show that debtors take Debt Payment Obligations Postponement if they have difficulty making payments on time because of Covid-19. By using this method, all obligations will be suspended if Debt Payment Obligations Postponement status is granted by the court. Based on these findings, it can be concluded that during the pandemic, the company used this method of debt Payment Obligations Postponement as a way to avoid bankruptcy.

Keywords: Covid-19- Bankruptcy- PKPU

Topic: Trade and Business