Indonesia Conference Directory

ABSTRACT Encumbrance Rights is one of the collateral guarantees. The main function of guarantees is to provide creditors with confidence that the debtor will carry out the agreement. The existence of collateral gives a preferred position of encumbrance rights holders. Encumbrance Rights Holders also have separatist creditors positions. This is confirmed in the Encumbrance Rights Act and the Bankruptcy Act. On the other hand the Bankruptcy Act also regulates the existence of a waiting period which undermines the rights of separatist creditors. The study aims to create a model of resolving conflicting legal norms to provide legal protection to creditor of encumbrance rights holders in debtor bankruptcy. The research method used is socio legal. The facts show that there is a conflict of legal norms regarding the arrangement of Encumbrance Rights Holder between the Encumbrance Right Guarantee Act and the Bankruptcy Act, resulting in a dispute in the implementation of the encubrance rights in the case of a bankrupt debtor. This results in no legal certainty and a lack of legal protection for creditors of Encumbrance Rights Holder.