Legal Protection for Bankrupt Debtors in Bankruptcy Settlement in Indonesia

Abstract

The protection of creditors right during the bankruptcy can be in the form of regulation of time frame on assets settlement or what is called asset seizure. Debt must still be repaid to the creditors using the debtor’s assets with the help of a curator. This ensures that that the bankruptcy settlement process is carried out quickly, fairly, transparently, efficiently, effectively, and professionally. In relation to research methodology, this study uses a normative juridical method, which is a statute approach by using a descriptive-evaluative method as a data analysis method. Based on the analysis of the data, it can be concluded that Law No. 37 of 2004 on Bankruptcy in Indonesia does not provide a clear time frame for the curator to complete the settlement of bankrupt assets. This lack of explicit regulation regarding the completion period can contribute to delays in the management and settlement of bankruptcy cases. Such delays may have detrimental effects, worsening the debtor's financial situation and prolonging uncertainty for creditors awaiting repayment, ultimately hindering the efficiency and fairness of the bankruptcy process. Although no regulations explicitly stipulate these principles, several articles in the Bankruptcy Law reflect the values of these principles. The debtor has the right to file a petition for a suspension of debt payment obligations before being declared bankrupt by the Commercial Court. In addition, the debtor has the right to participate in discussions related to settlement agreements.