Implementation Regulation of Auctions of Rights of Suit Related to Grantors of Rights of Suit Declared Bankrupt

Bankruptcy involving collateral in the form of mortgage rights gives rise to legal conflicts between Law No. 4 of 1996 on Mortgage Rights and Law No. 37 of 2004 on Bankruptcy and PKPU. The legal issues that arise are related to the overlapping authority between separate creditors and trustees, as well as the 90 day stay period for enforcement as stipulated in the Bankruptcy Law. This study aims to examine the auction procedures for enforcing collateral rights when the debtor is declared bankrupt, as well as to analyze the legal status of collateral that has been encumbered with collateral rights in bankruptcy. The research method used is a normative legal method with a legislative and conceptual approach. The results of the discussion show that in practice, the right of separate creditors to execute collateral through parate executie is often hindered by provisions in the Bankruptcy Law, which require the involvement of a trustee and set a specific time limit before execution can be carried out. This conflicts with Articles 6 and 21 of the Security Rights Act, which state that holders of security rights may still exercise their rights even if the debtor is bankrupt. Additionally, there is a normative gap in the alignment of procedures between the public auction under the Security Rights Act and execution under the bankruptcy regime. This study confirms that there is a conflict of norms between two laws that are equally binding and have equal hierarchical status. In this case, the principle of lex specialis derogat legi generali can be used to prioritize the Mortgage Law as a special regulation for land and buildings encumbered with collateral. Harmonization of norms is crucial to avoid legal uncertainty for separate creditors. Regulatory harmonization and the development of technical guidelines for the execution auction of mortgage rights in bankruptcy conditions are necessary to ensure legal effectiveness and protection for all parties involved.