A Legal Protection of Separatist Creditors in The Management and Settlement of Bankruptcy Assets

Abstract

The legal protection provided by Law Number 37 of 2004 for secured creditors in the management and settlement of bankrupt assets is discussed in depth in this article. In essence, bankruptcy is' a method of debt settlement by confiscating all of the debtor's' assets and distributing them proportionally to the creditors in accordance with the principle of pari passu prorate parte in Articles 1131 and 1132 of the Civil Code. However, in reality, the position of secured cre'ditors with material collateral such as mortgages, fiduciaries, pledges, or mortgages is not always protec'ted in accordance with normative norms. Although secured creditors have the right to enforce their collateral as if bankruptcy had not occurred based on Article 55 paragraph (1 ) of the Bankruptcy Law, this provision is limited by Articles' 56 and 59, which stipulate a 90-day suspe'nsion of enforcement and a time limit for enforcement. These restrictions often cause separatist creditors not to obtain the full execution results because they have to share with preferred or conc'urrent creditors in the distribution list compiled by the curator. This normative legal res'earch reveals' a conflict between bankruptcy law and property security legislation, especially when the application of bankruptcy rules really diminis'hes the interests of secured creditors, who are robustly protected by civil law. The study's conclusions highlight the necessity of harmonizing regulations, bolstering supervisory judges' and curators' supervision procedures, and regularly using the lex specialis derogat legi generali principle to decide which norms are more important in conflict situations. Therefore, it is pos sible to safeguard secured creditors without compromising the goal of bankruptcy, which is to distribute debtor assets equitably among all creditors.

Keywords: Bankruptcy, Creditor Separatist