Warning Letter As A Legal Measure To Be Taken After The Debtor’s Default

A default is a condition in which a party is unable or negligent to carry out the agreement to another party that has been agreed between them, or it can also be understood as a condition when the debtor fails to pay the creditor in accordance with the agreement. In the event that the creditor has a debtor who is in default, the legal measure that shall to be taken before the creditor files a civil lawsuit is to send a Warning Letter to the defaulting debtor.

The event of default is stipulated in Article 1238 of the Indonesian Civil Code, which states: “The debtor shall be deemed in default, either by an order or other similar deed, or pursuant to the obligation itself, where such obligation stipulates that the debtor shall be in default, upon failure to deliver within the stipulated time period”. After the debtor does not carry out his obligations in accordance with the agreement or in default, the creditor or the aggrieved party may issue a written warning letter. In the warning letter, the creditor may submit and sue the debtor for several things including: fulfillment of the engagement and compensation, claiming compensation; cancellation of mutual consent; and engagement cancellation and compensation.

In general, creditors or parties who are harmed because their rights are not fulfilled based on the agreement, send 3 (three) warning letters to the debtor. By sending the warning letter, it is expected that the debtor may respond and show good faith to fulfill his obligations as demanded by the creditor in the warning letter. If after being warned several times through warning letters but the debtor still does not heed the warning, the creditor can file a civil lawsuit to declare the debtor in default and at the same time ask for his rights along with compensation through the Court. Furthermore, the warning letter can also be used in the trial as letter evidence to prove the fulfillment of the default element of the debtor.

Thus, a brief description of Warning Letters as legal measures after the Debtor’s Default. Warning. If you are interested in knowing more about the summons or warning letter, you can contact our law office, Suria Nataadmadja & Associates Law Firm.

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