Role of Receivers and Lawyers Should not be Confused

Happy Rayna Stephany, Robert Sidauruk

Although most receivers that act in bankruptcy cases are also registered lawyers, there needs to be a clear distinction made between the duties of each and how they act in the performance of their respective roles in bankruptcy cases. It is important that in bankruptcy cases a receiver acts as such and relinquishes his or her interests as a lawyer. 

Pursuant to the Minister of Law and Human Rights Regulation No. M.01-HT.05.10 of 2005 on Registration of Official Receivers and Administrators, it is possible for receivers to be registered as lawyers and vice versa However, a problem arises when a person who is appointed as a receiver  also acts “as if” he/she is a lawyer in a  case.

Ricardo Simanjuntak, Chairman of the Indonesian Receivers and Administrators Association, asserts that a person who acts as a receiver must be aware of his/her role  when dealing with bankruptcy cases.

Ricardo further explains that the actions of a receiver  must only bedone in the pursuit  of the bankruptcy case to secure any debtor’s property and other assets. In contrast,  a lawyer’s role is to  act on behalf of his/her client’s interest.

“A receiver stands above debtor and creditor interests, therefore it is important that a receiver is careful in the steps he/she takes so as n not to prejudice any parties,” says Ricardo.

This sentiment was  also confirmed by Andrey Sitanggang, an Indonesia receiver.  He explained that in some bankruptcy cases, receiver’s independence, or perceived lack of, when dealing with a bankruptcy estate is the most frequent complaint from debtors. Debtors tends to take the view that receivers are acting against them as receivers  are appointed by creditors.

“It does not work that way. A receiver is an independent party who may  occasionally even act as a mediator between a debtor and creditors,” explains Andrey.

In addressing this issue, Andrey feels it is not necessary to prohibit lawyers from being involved in duale professions as both receivers and lawyers. What is more important is improving professionalism among receivers to fully understand  their duties and role in bankruptcy cases.

Ricardo, however, sees this slightly differently . While he  agrees with the idea of improving the professionalism of both lawyers and receivers, he believes a strict separation between lawyersand official receivers is the most effective solution to the problem.

“To a certain extent, there is an overlap in the  professional duties and roles of lawyers and official receivers,” Ricardo concludes.

(hot/kc)

Happy Rayna Stephany, Robert Sidauruk

Although most receivers that act in bankruptcy cases are also registered lawyers, there needs to be a clear distinction made between the duties of each and how they act in the performance of their respective roles in bankruptcy cases. It is important that in bankruptcy cases a receiver acts as such and relinquishes his or her interests as a lawyer. 

Pursuant to the Minister of Law and Human Rights Regulation No. M.01-HT.05.10 of 2005 on Registration of Official Receivers and Administrators, it is possible for receivers to be registered as lawyers and vice versa However, a problem arises when a person who is appointed as a receiver  also acts “as if” he/she is a lawyer in a  case.

Ricardo Simanjuntak, Chairman of the Indonesian Receivers and Administrators Association, asserts that a person who acts as a receiver must be aware of his/her role  when dealing with bankruptcy cases.

Ricardo further explains that the actions of a receiver  must only bedone in the pursuit  of the bankruptcy case to secure any debtor’s property and other assets. In contrast,  a lawyer’s role is to  act on behalf of his/her client’s interest.

“A receiver stands above debtor and creditor interests, therefore it is important that a receiver is careful in the steps he/she takes so as n not to prejudice any parties,” says Ricardo.

This sentiment was  also confirmed by Andrey Sitanggang, an Indonesia receiver.  He explained that in some bankruptcy cases, receiver’s independence, or perceived lack of, when dealing with a bankruptcy estate is the most frequent complaint from debtors. Debtors tends to take the view that receivers are acting against them as receivers  are appointed by creditors.

“It does not work that way. A receiver is an independent party who may  occasionally even act as a mediator between a debtor and creditors,” explains Andrey.

In addressing this issue, Andrey feels it is not necessary to prohibit lawyers from being involved in duale professions as both receivers and lawyers. What is more important is improving professionalism among receivers to fully understand  their duties and role in bankruptcy cases.

Ricardo, however, sees this slightly differently . While he  agrees with the idea of improving the professionalism of both lawyers and receivers, he believes a strict separation between lawyersand official receivers is the most effective solution to the problem.

“To a certain extent, there is an overlap in the  professional duties and roles of lawyers and official receivers,” Ricardo concludes.

(hot/kc)

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