The purpose of this study is to analyze: 1) To what extent are the factors that cause bad loans in debtors? What are the legal remedies in resolving bad credit cases experienced by debtors? This research is a normative legal research, which is the study of legal materials, both primary and secondary legal materials The results of the study show that: 1) Default is the unfulfilled or negligent performance in carrying out obligations (achievements) as specified in the agreement between the parties. Default can occur due to the debtor's fault (intentionally or negligently); and overmacht. Non-performing loans are risks contained in every credit provided by banks to their customers. The risk is in the form of a situation where credit cannot be returned on time (default). Non-performing loans in banking can be caused by several factors, for example, there is intentionality on the part of the parties involved in the credit process, errors in the credit granting procedure, or due to other factors such as macroeconomic factors; 2) The method of settling bad loans that is allowed by law and which it considers the most profitable for the Bank, consists of 3 (three) options, namely: How to resolve court lawsuits (litigation), How to settle through court (non-litigation alternative to litigation), and Alternative Dispute Resolution (ADR).