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Vol.%%03,%No.%12,%December%2023%

e-ISSN:%2807-8691,|,p-ISSN:%2807-839X$

IJSSR!Page%3316

https://doi.org/10.46799/ijssr.v3i12.651%

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Legal&Analysis&of&Corporate&Insolvency:&A&Case&Study&of&the&

Insolvency&Resolution&Process&

Warmiyana!Zairi!Absi1,!Marsudi!Utoyo2#

Sekolah%Tinggi%Ilmu%Hukum%Sumpah%Pemuda,%Indonesia1,2%

Email:%[email protected]1,%[email protected]2%

Keywords)

ABSTRACT!

!"#$%&'($%)*+*,&-(*.%/"(0),&

-(*.%/"(0)&1"22%"3"(2&45.0"**6)

Bankruptcy!is!a!situation!that!can!be!experienced!by!all!who!run!

their! business,! bankruptcy! is! a! debtor! who! is! in! an! unfavorable!

state!because!all!his!assets!are!not!enough!to!meet!his!needs!to!pay!

all! his! debts.! So! that! legal! problems! arise! when! a! company!

experiences!financial!difficulties,! in! Indonesia! bankruptcy! law! is!

regulated!in!Law!number!37!of!2004.!The!purpose!of!the!study!is!

to!analyze!bankruptcy!law,!especially!the!bankruptcy!settlement!

process.!The!research!method!used!in!this!study!is!the!descriptive!

qualitative! method.! Data! collection! is! carried! out! through!

literature! studies! (library! research),! then! the! collected! data! is!

analyzed! through! three! stages,! namely! data! reduction,! data!

presentation,! and! conclusions.! The! results! showed! that! Law!

Number!37! of! 2004! can! provide! legal! protection! to! creditors,!

debtors,! and! the! public! fairly! and! equitably.! The! bankruptcy!

settlement!process!can!be!carried!out!through!two!stages,!namely!

the!PKPU!stage!or!postponement!of!debt!payment!obligations!and!

the! bankruptcy! settlement! process.! The! bankruptcy! settlement!

process! consists! of! several! stages,! namely! the! first! bankruptcy!

application,! the! examination! of! the! bankruptcy! application,! the!

bankruptcy!statement!decision,!the!appointment!of!a!receiver,!the!

distribution! of! debtor's! assets,! and! then! the! last! stage! of! the!

bankruptcy!closing!decision.!

INTRODUCTION!

A%company's%business%life%does%not%always%run%smoothly;%at%one%time,%there%is%an%increase,%and%at%

another% time,%there% is% a% decrease.% The% company's% condition% is% in% 2% states,% namely% profit% and% loss.% If% the%

company%is%in%a%state%of%profit,%it%develops%and%continues%to%develop%to%become%a%giant%company.%Conversely,%

if%the%company's%condition%suffers%losses,%its%lifeline%declines,%and%often%its%financial%condition%is%such%that%

the%company%can%no%longer%pay%its%debts%or%goes%bankrupt%(Do,%2022;%Gopalakrishnan%&%Mohapatra,%2020;%

Kliatskova%et%al.,%2023;%Tolmie,%2013).%

Bankruptcy%is%an%unfavorable%debtor%situation%because%the%debtor's%assets%are%not%enough%to%meet%

the%debtor's%needs%to%pay%all% the%debts% (Fauzi,%2018).%Bankruptcy%can%significantly% impact%the% company,%

employees,%and%creditors.%An%insolvent%company%may%have%to%cease%operations,%leading%to%layoffs%and%job%

losses,%so%debtors%may%be%unable%to%pay%off%their%debts,%which%can%cause%financial%problems%(Gopalakrishnan%

&%Mohapatra,%2020;%Li%et%al.,%2023;%Yu%&%Chen,%2023).%

The%condition%of%this%bankrupt%company%raises%a%series%of%legal%problems.%A%series%of%legal%issues%

that% arise% when% a% company% experiences% financial% difficulties% are% conflicts% between% shareholders% and%

management,%as%well%as%majority%and%minority%shareholders,%and%conflicts%between%the%company%and%its%

International!Journal!of!Social!Service!and!Research,%%

Warmiyana%Zairi%Absi1,%Marsudi%Utoyo2%

IJSSR!Page%3317

creditors%(Elsayed%et%al.,%2022;%Kimani%et%al.,%2021).%So,%a%law%is%needed%that%regulates%company%bankruptcy.%

Insolvency%law%is%primarily%or%even%exclusively%a%debt%collection%law,%that%is,%as%an%instrument%to%meet%the%

interests%of%creditors%when%debtors%are%in%situations%of%financial%difficulty%(Eidenmüller,%2023).%%

According% to% Toha% &%Retnaningsih,% (2020),% bankruptcy% was% initially% considered% a% verdict% on% a%

criminal% act%because% debtors% were% evading% or% unwilling% to% pay% their% debt%to% creditors.% Bankruptcy% is% a%

penalty%for%debtors%who%do%not%pay%their%debts%and%for%the%debtor's%bad%faith%that%deceives%and%prevents%

creditors%from%collecting%their%debts%by%hiding%assets.%The%debtor%who%cannot%pay%his%debts%will%be%put%in%

jail,%and%his%property%will%be%taken%and%sold%to%pay%off%his%debts%to%creditors.%In%later%developments,%modern%

bankruptcy%law%was%created%to%prevent%debtors%experiencing%financial%difficulties%from%being%continuously%

billed% to% pay% creditors.% At%the% same% time,% it% provided% access% for% creditors%to% own% debtors'% assets% as%

repayment%of%their%debts,%although%often%insufficient.%Thus,%bankruptcy%no%longer%serves%as%a%punishment%

but%as%a%solution%to%creditors'%debt%problems%(Guan%et%al.,%2021;%Olujobi,%2021;%Stef%&%Bissieux,%2022).%

Bankruptcy% law% exists% in% each% country% with% different% policies% and% pros% and% cons.% In% Indonesia,%

bankruptcy%law%is%regulated%in%Law%37%of%2004%concerning%bankruptcy%and%suspension%of%debt%payment%

obligations.%This%law%is%one%of%the%legal%means%that%becomes%the%basis%for%the%settlement%of%receivables%and%

is%closely%relevant%to%the%bankruptcy%of%the%business%world,%including%regulations%on%the%suspension%of%debt%

payment%obligations%(Closset%et%al.,%2023;%Kaya,%2022).%

In% previous%research% by% Karlesta,% (2019)%entitled% Analysis% of% bankruptcy% law% against% BUMD%

holdings,%the%result%of%the%analysis%is%that%the%status%of%BUMD,%which%has%the%status%of%a%Company,%can%be%

equated% with% a% private% Limited% Liability% Company% (PT).% because% there% is% capital% participation% provided,%

Thus,%state%wealth%is%included%for%the%formation%of%BUMD,%the%country's%wealth%becomes%BUMD's%wealth.%

With%the%participation%of%capital%from%state%assets%that%are%used%as%BUMD%assets%and%then%re-included%as%

assets%for%the%formation%of%subsidiaries,%the%assets%included%can% be%confiscated%by%the%court%and%used%as%

bankruptcy%asset%settlement.%Meanwhile,%research%by%Syuhada,%(2023)%entitled%Company%legal%analysis%in%

the%bankruptcy%case%of%a%subsidiary%of%a%Negata%Owned%Enterprise%(Holding&company)%resulted%in%the%first,%

even% though% a% holding% company% was% formed,% the% parent% company% and% subsidiaries% as%the% existence% of%

separate%legal%entities%and%limited%liabilities%limited%separate%and%independent%companies%in%carrying%out%

their%respective%activities.%Second,%the%bankruptcy%of%subsidiaries%included%in%SOE%holding%companies%can%

occur,%and%the%form%of%responsibility%of%the%parent%company,%which%is%a%BUMN,%is%limited%to%the%shares%it%

owns.% If%it% is% known% that% in% the% management% of% financial% management,% the% parent% holding% of% SOEs%

participates%in%causing%the%subsidiary%to%go%bankrupt,%then%responsibility%can%expand.%%

Although%a%lot%of%literature%has%discussed%bankruptcy%law%analysis,%the%update%of%this%research%is%

found%in%the%object%studied,%namely%bankruptcy%law%analysis,%especially%the%bankruptcy%settlement%process.%

Bankruptcy%law%is%a%mechanism%to%resolve%debt%problems%that%cannot%be%resolved%voluntarily.%Bankruptcy%

law%is%expected%to%provide%justice%for%all%parties%involved,%namely%debtors,%creditors,%and%the%community.!So,%

this% study% aims%to% analyze% the% provisions% of% company% bankruptcy% law,% especially% about% the% bankruptcy%

settlement%process.%%

METHODS!

This%research%uses%descriptive%qualitative%research,%according%to%Hennink%et%al.%(2020),%qualitative%

research%is%an%approach%that%allows%to%examine%people's%experiences%in%detail%or%learn%their%natural%things%

by%trying%to%understand%or%interpret%phenomena%in%relation%to%the%meaning%given%by%people%using%a%series%

of% methods.% This% study% uses%the% literature% review% method% (library% research),% where% researchers% collect%

materials%related%to%research%derived%from%books,%journals,%scientific%articles,%literature,%mass%media%reports%

and% legislation% by% describing% and% describing% the% data.% Then,% it% will% be%analyzed% using% data% reduction%

International!Journal!of!Social!Service!and!Research!%https://ijssr.ridwaninstitute.co.id/%

IJSSR!Page%3318

presented% in% descriptive% form,%and% conclusions% can% be% drawn% regarding% the% legal% analysis% of% company%

insolvency:%a%case%study%on%the%bankruptcy%resolution%process.%

RESULTS!

The%business%world%without%credit%is%impossible%to%imagine;%suppliers,%banks,%financial%institutions,%

and%financial%investors%give%a%huge%amount%of%credit%annually.%Credit%can%facilitate%the%smooth%running%and%

expansion%of%a%business%and%can%also%influence%a%company%to%increase%its%profits%by%doing%more%business%

than%using%its%own%funds.%The%higher%the%level%of%borrowed%funds,%the%greater%the%profit;%this%is%not%a%problem%

if%trading%income%exceeds%the%loan%repayment%cost.%Of%course,%when%trading%volumes%become%unprofitable,%

the%obligation%to%pay%debts%will%add%to%losses%and%accelerate%bankruptcy.%Bankruptcy%exists%because%of%the%

inability%to%pay%its%debts.%Therefore,%bankruptcy%arises%from%the%provision%of%credit%because,%without%credit,%

there%will%be%no%debt%(Goode,%2011).%

The%word%bankruptcy%can%be%interpreted%as%the%debtor%being%unable%to%make%payments%on%debts%

from%his%creditors.%Bankruptcy%is%a%court%decision%that%results%in%a%general%confiscation%of%all%assets%of%the%

bankrupt%debtor,%both%existing%and%future%(Shubhan,%2015).%The%management%and%settlement%of%bankruptcy%

is%regulated%in%bankruptcy%law,%where%the%receivership%carries%out%the%settlement%under%the%supervision%of%

the%supervisory%judge%with%the%main%purpose%of%using%the%proceeds%of%the%sale%of%the%assets%to%pay%all%debts%

of%the%bankrupt%debtor%proportionally%and%in%accordance%with%the%creditor%structure.%

In%Indonesia,%bankruptcy%law%is%regulated%in%Law%Number%37%of%2004%concerning%Bankruptcy%and%

Suspension% of% Debt% Payment% Obligations% (Bankruptcy% Law% and% PKPU).% In% detail,% the% Bankruptcy% Law%

regulates% the% following% matters:% bankruptcy% procedures,% which% include% filing% a% bankruptcy% application,%

examining% bankruptcy% applications,% and% determining% bankruptcy.% The%process% of% managing% and% settling%

bankruptcy% assets% includes%collecting,% managing,% and% selling% bankruptcy% assets% to% be% distributed% to%

creditors.%Third,%the%rehabilitation%of%bankrupt%debtors%is%the%process%of%restoring%the%financial%and%business%

condition%of%the%bankrupt%debtor.%This%Law%also%implies%the%purpose%of%resolving%bankruptcy%problems%in%

Indonesia.%This%law%protects%creditors,%debtors,%and%the%public%fairly%and%equitably.%According%to%Hartono%

(1999)%and%Shubhan,%(2020),%the%bankrupt%institution%can%prevent%or%avoid%two%unfair%actions%that%can%harm%

all%parties.%These%two%things%are%first%to%avoid%mass%execution%by%debtors%or%creditors%and%second%to%prevent%

dishonesty%by%debtors.%%

Bankruptcy%institutions%have%various%objectives%of%insolvency%institution%protection,%including%the%

importance%of%creditors.%The%interests%of%creditors%take%precedence%over%the%interests%of%all%other%groups%

from%when%the%company%appears%to%be%in%financial%trouble%or%can%be%inferred%to%maximize%creditors'%profits%

(Armour,% 2001).% Bankruptcy%law% aims% to% protect%creditors% so% that% they% can% obtain% fair% and% equitable%

repayment% of% their% receivables.% In% the% event% of% bankruptcy% against% debtors,% the% principle% of% creditorum%

parity%will%apply,%which%means%that%all%creditors%have%equal%rights%to%debt%payments%and%that%the%proceeds%

of%bankruptcy%assets%will%be%distributed%proportionally%to%the%size%of%their%bills%(Diza%&%Wiradirja,%2018).%%

This%is%done%by%collecting%all%assets%of%bankrupt%debtors%and%then%dividing%them%proportionally%to%creditors%

according%to%the%amount%of%their%respective%receivables.%

Apart%from%being%creditor%protection,%bankruptcy%institutions%can%also%ease%the%burden%on%debtors%

through% the% repayment% of% receivables.% Creditors% can% only% take% from% what% the% debtor% has% while% in%

bankruptcy,%meaning%that%after%the%debtor's%assets%are%completely%exhausted,%the%debtor%must%be%released%

from% the% remaining% debts% that% he% cannot% pay% (Fauzi,% 2018).% This% Bankruptcy% Law% also% aims% to% protect%

debtors'%interests%so%they%can%start%a%new%life%after%bankruptcy.%This%is%done%by%providing%opportunities%for%

bankrupt%debtors%for%rehabilitation,%namely%the%process%of%recovering%the%financial%and%business%condition%

of%the%bankrupt%debtor.%

International!Journal!of!Social!Service!and!Research,%%

Warmiyana%Zairi%Absi1,%Marsudi%Utoyo2%

IJSSR!Page%3319

The%bankruptcy%law%does%not%escape%the%aim%of%protecting%the%public%interest%so%that%there%is%no%

disruption% to% economic% stability.% Professor% Warren% (2013)% argues% that% bankruptcy% law's% purpose%is% to%

provide%a%forum%where%all%interests%can%be%heard.%Trusted%bankruptcy%law%can%increase%public%confidence%

to%invest.%People%will%feel%more%confident%that%their%investment%will%be%safe,%even%if%their%company%is%declared%

bankrupt.%This%is%because%the%bankruptcy%law%provides%fair%legal%protection%for%all%parties%involved%in%the%

bankruptcy%process.%%

The%bankruptcy%settlement%process%can%be%carried%out%through%the%PKPU%stage%or%the%postponement%

of%debt%payment%obligations.%If%most%creditors%do%not%approve%the%PKPU%proposal,%then%the%PKPU%process%

will%end%with%the%dissolution%of%the%PKPU.%In%this%case,%the%debtor%will%be%declared%bankrupt,%and%the%second%

stage%of%the%process%of%managing%and%settling%the%bankrupt%assets%will%begin.%

The%implementation%of%PKPU%is%one%way%to%prevent%debtors%from%the%bankruptcy%process%(Sihotang,%

2021),% PKPU% is% a% process% provided% by% law% through% a% commercial% judge% decision% where% during% which%

creditors%and%debtors%are%given%the%opportunity%to%negotiate%ways%to%pay%their%debts%by%providing%plans%

(offering),%paying%all%or%part%of%their%debts,%including%if%needed%to%be%able%to%restructure%the%debt.%Based%on%

Article%222,%paragraph%2%of%the%Bankruptcy%Law%and%PKPU,%debtors%who%are%unable%or%expected%to%be%unable%

to%continue%paying%their%overdue%and%collectible%debts%can%apply%for%PKPU%to%submit%a%peace%plan%containing%

an%offer%to%pay%all%or%part%of%the%debt%to%creditors.%%%

The%objectives%of%PKPU%itself%are%as%follows%Sitohang,%(2021)%first,%debtors%get%enough%time%to%fix%

their% difficulties,% and% finally,% they%can%pay% or% pay% off% their% debts% in% the% future.% Second,% it% is% possible% for%

creditors%to%get%full%payment%of%their%receivables%so%as%not%to%harm%them.%Third,%it%is%possible%for%creditors%

to%get%full%payment%of%their%receivables%so%as%not%to%harm%them.%PKPU%applications%are%made%by%debtors%and%

creditors%who%estimate%that%debtors%cannot%continue%to%pay%their%overdue%and%collectible%debts.%This%shows%

that%PKPU%is%not%only%intended%for%the%interests%of%debtors%but%also%for%the%interests%of%creditors.%

Suppose%there%is%no%other%way%for%creditors%and%debtors%to%solve%the%problem.%In%that%case,%this%peace%

is%hoped%to%eliminate%and%resolve%the%debtor's%bankruptcy,%provided%all%creditors%follow%and%approve%it%(Al%

Kautsar%&%Muhammad,%2021).%The%permanent%suspension%of%debt%repayment%obligations,%determined%by%

the%court,%is%based%on%the%agreement%of%more%than%half%the%number%of%concurrent%creditors%present%and%

represents%at%least%2/3%of%all%recognized%or%provisionally%recognized%bills.%If%a%dispute%arises%regarding%the%

voting%rights%of%these%creditors,%the%settlement%is%decided%by%a%supervisory%judge.%If%creditors%approve%the%

peace%plan,%then%the%commercial%court%will%issue%a%homologation%ruling.%Homologation%is%a%ratification%of%

peace%by%a%judge%upon%an%agreement%between%debtors%and%creditors%to%end%bankruptcy%(Purba%et%al.,%2019).%

Once%the%homologation%verdict%is%issued,%then%the%peace%plan%must%be%implemented.%The%implementation%of%

the%peace%plan%will%be%supervised%by%PKPU%management.%However,%if%creditors%reject%the%PKPU,%the%debtor%

will%lose%the%opportunity%to%maintain%his%business%and%pay%his%debts%to%creditors.%The%debtor%will%be%declared%

bankrupt,% the% receivership% will% manage% his% assets,% and% the% second% stage% of% managing% and% settling% the%

bankrupt%assets%will%begin.%

In%the%bankruptcy%settlement%process,%bankruptcy%law%in%Indonesia%adheres%to%the%principle%of%pari%

passu%prorata%parte,%namely%that%assets%owned%by%a%person%will%be%a%guarantee%for%all%creditors%when%the%

income%generated%from%the%collection%of%these%assets%is%distributed%evenly%and%proportionally%unless%there%

are% creditors% whose% debts% must% be% repaid% according% to% law% (Simaremare% et% al.,% 2021)%which% means%

payments%to%creditors%are%made%proportionally,%%That%is%in%accordance%with%the%amount%of%each%creditor's%

bill.%

In%bankruptcy%proceedings,%the%debtor's%assets%will%be%sold%to%pay%his%debts.%The%curator%sells%the%

debtor's%assets;%the%proceeds%of%the%sale%of%the%debtor's%assets%will%be%divided%among%creditors%in%order%of%

International!Journal!of!Social!Service!and!Research!%https://ijssr.ridwaninstitute.co.id/%

IJSSR!Page%3320

priority.%Creditors%who%have%short-term%debt%will%be%prioritized%to%receive%payments.%Law%No.%53%of%2004%

contains%a%bankruptcy%settlement%process%consisting%of%several%stages.%%

The% first% stage% of% the% bankruptcy% settlement% process% is% a% bankruptcy% application,% a% bankruptcy%

application% is% an% application% submitted% by% a% debtor% or% creditor% to% the% commercial% court% to% be% declared%

bankrupt.%An%application%for%bankruptcy%can%be%filed%if%the%debtor%meets%the%conditions%prescribed%by%law.%

The%requirements%for%filing%a%bankruptcy%statement%application%against%debtors%can%be%seen%in%Article%2%(1)%

of%Law%No.%37%of%2004%concerning%Bankruptcy%and%Suspension%of%Debt%Payment%Obligations%which%states%

that%"Debtors%who%have%two%or%more%creditors%and%do%not%pay%in%full%at%least%one%debt%that%has%fallen%due%

and%can% be% collected,%is% declared% bankrupt% by% a%court% decision,% %either% on% his%own% application%or% on% the%

application%of%one%or%more%of%his%creditors.%

This%bankruptcy%application%can%be%filed%by%the%debtor%himself%or%by%creditors.%If%the%debtor%files%the%

bankruptcy% application,% then% the% application% is% referred% to% as% a% voluntary% bankruptcy% application.% If%

creditors% file% the% bankruptcy% application,% then% the% application% is% referred% to% as% a% forced% bankruptcy%

application.%The%bankruptcy%application%must%be%submitted%in%writing%to%the%competent%commercial%court.%

Article% 5% explains% that% the% application% must% contain%the% application% for% the% name% and% residence% of% each%

pesero%who%is%jointly%bound%to%all%debts%of%the%firm.%

Upon% receipt% of% the% bankruptcy% application,% the% Commercial% Court% will% examine% the% application%

within% a% period% of% no% later% than% 3% (three)% days% after% the% date% the% bankruptcy% declaration% application% is%

registered.%A%commercial%court%is%a%special%court%established%within%the%district%court.%Commercial%courts%

have%absolute%authority%to%examine%and%decide%bankruptcy%applications,%postponement%of%debt%payment%

obligations,%and%other%matters%(Hermawan%et%al.,%2020).%Thecourt%studies%the%application%and%sets%a%hearing%

day,%%the%examination%of%the%bankruptcy%application%is%carried%out%by%a%panel%of%judges.%

The% bankruptcy% application% that% the% panel% of% judges% has% examined%is% then% carried% out% a% hearing%

decision.%The%court%decision%on%the%application%for%bankruptcy%statement%must%be%pronounced%no%later%than%

60%(sixty)%days%after%the%date%the%application%for%bankruptcy%statement%is%registered.%Citing%article%8%(4),%an%

application%for%bankruptcy%declaration%must%be%granted%if%there%are%facts%or%circumstances%that%prove%that%

the% requirements% for% being% declared% bankrupt% have% been% met.% %The% Commercial% Court% will% issue%a%

bankruptcy% declaration% decision% if% the% bankruptcy% application% is% granted.% This% bankruptcy% declaration%

decision%has%permanent%legal%force.%

After% the% bankruptcy% declaration% decision% is% pronounced,% the% Commercial% Court% will% appoint% a%

receiver.%A%curator%is%an%individual%appointed%by%the%court%to%manage%and%settle%the%bankrupt%debtor's%assets%

under%the%supervision%of%the%supervisory%judge%(Widiarini%&%Anggoro,%2022).%The%duties%of%the%receivership%

in%more%detail%are%as%follows:%conduct%an%inventory%of%the%debtor's%assets,%both%movable%and%immovable,%

both%tangible%and%intangible,%protect%the%debtor's%assets%from%unauthorized%use,%seizure,%or%sale%that%harms%

creditors,% manage% debtors'% assets,% sell% debtors'% assets,% pay% debtors'% debts% to% creditors,% and% resolve%

bankruptcy%cases.%Curators%can%be%appointed%from%two%sources:%Balai%Harta%Warisan%(BHP)%and%individuals.%

Curators%appointed%by%BHP%are%called%BHP%curators,%and%curators%appointed%by%natural%persons%are%called%

private%curators.%

The%curator%has%the%authority%to%sell%the%debtor's%assets%after%paying%the%debtor's%debts%to%creditors.%

The%distribution%of%assets%of%the%bankrupt%debtor%is%carried%out%based%on%the%principle%of%pari%passu%pro%rata%

parte.%This%principle%means%that%all%the%debtor's%assets%become%common%security%for%all%creditors.%Payment%

to%creditors%is%made%proportionally,%according%to%the%amount%of%each%creditor's%bill.%If%the%debtor's%assets%are%

insufficient%to%pay%all%creditors,%payments%will%be%made%proportionately%to%all%creditors,%including%privileged%

creditors.%The%distribution%of%assets% of% insolvent%debtors%is%a%complex% and% time-consuming%process.% The%

International!Journal!of!Social!Service!and!Research,%%

Warmiyana%Zairi%Absi1,%Marsudi%Utoyo2%

IJSSR!Page%3321

receivership% must% work% closely% with% the% supervising% judge% and% creditors% to% complete% this% process% in% a%

manner%that%is%reasonable%and%benefits%the%creditor.%

After%all%debtors%are%paid,%the%Commercial%Court%will%decide%to%close%the%bankruptcy.%This%judgment%

is%imposed%if%any%of%the%following%occurs%the%debtor's%assets%have%been%sold%out%and%all%debts%of%the%debtor%

have% been% repaid,% the% debtor% has% been% dissolved,% the% debtor% has% been% converted% into% a% limited% liability%

company,%and%the%debtor%has% qualified% to%apply%for%rehabilitation.%This%verdict%must%be%pronounced%in%a%

hearing%open%to%the%public.%After%the%bankruptcy%closing%judgment%is%pronounced,%the%bankruptcy%process%

is%declared%over.%The%bankruptcy%closing%decision%has%permanent%legal%force%or%what%in%Dutch%is%called%kracht%

vangewijsde%(Savitri%&%Santoso,%2021).%

The%decision%to%close%bankruptcy%has%several%legal%consequences,%including%the%debtor%is%declared%

no%longer%bankrupt,%which%means%that%this%decision%restores%the%debtor's%legal%status%to%what%it%was%before%

it% was% declared% bankrupt.% The% debtor% again% has% the%authority% to% manage% and% control% his% property,% and%

perform%legal%actions,%then%all%the%rights%and%obligations%of%the%debtor%that%have%been%transferred%to%the%

receiver,% such% as% the% right% to% receive% payments% from% creditors% back% to% the% debtor.% Curator,% after% the%

bankruptcy% closing% judgment,% the% receiver's% duties% have% been% completed,% and% he% is% dismissed% from% his%

position.% So% that% the% bankruptcy% process% is% important% to% protect% the% interests% of% all% parties% concerned,%

namely%debtors,%creditors,%and%the%public.%

CONCLUSION!

A%company's%business%life%does%not%always%run%smoothly;%at%one%time,%there%is%an%increase,%and%at%

another%time,%there%is%a%decrease.%Bankruptcy%is%a%situation%that%can%be%experienced%by%all%who%run%their%

business;%bankruptcy%is%a%debtor%who%is%in%an%unfavourable%state%because%all%his%assets%are%not%enough%to%

meet%his%needs%to%pay%all%his%debts.%Because%the%condition%of%this%bankrupt%company%raises%a%series%of%legal%

problems,%a%law%is%needed%that%regulates%company%bankruptcy.%Bankruptcy%law%has%an%important%role%in%a%

country's%economy,%in%addition%to%regulating%how%to%solve%the%problem%of%debt%receivables%that%cannot%be%

resolved%voluntarily.%Bankruptcy%law%aims%to%protect%the%rights%of%creditors%and%debtors%and%increase%public%

trust% in% the% business% world.% In% Indonesia,% bankruptcy% law% is% regulated% in% Law% 37% of% 2004% concerning%

bankruptcy%and%suspension%of%debt%payment%obligations.%

The%bankruptcy%settlement%process%can%be%carried%out%through%two%stages:%the%PKPU%stage%or%the%

postponement%of%debt%payment%obligations.%If%most%creditors%do%not%approve%the%PKPU%proposal,%then%the%

PKPU%process%will%end%with%the%dissolution%of%the%PKPU.%In%this%case,%the%debtor%will%be%declared%bankrupt,%

and%the%second%stage%of%the%process%of%managing%and%settling%the%bankrupt%assets%will%begin.%The%bankruptcy%

settlement%process%consists%of%several%stages,%namely%the%first%bankruptcy%application,%the%examination%of%

the% bankruptcy% application,% the% bankruptcy% statement% decision,% the% appointment% of% a% receiver,% the%

distribution%of%the%debtor's%assets,%and%then%the%last%stage%of%the%bankruptcy%closing%decision.%

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