Legal Analysis of the Mechanism for Examining Bankruptcy Cases and Its Issues in Commercial Court Practice from the Perspective of Law No. 37 of 2004

Abstract

Bankruptcy is a legal mechanism for settling debts when a debtor is unable to fulfill their obligations. In Indonesia, bankruptcy is regulated by Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations, which aims to provide legal certainty, justice, and balanced protection for debtors and creditors. This study aims to analyze the bankruptcy case examination process under this law and the effectiveness of its implementation in commercial courts. The study focuses on the examination stages, principles of proof, and the role of judges in determining bankruptcy requirements. The method used is normative juridical with a statutory and conceptual approach, utilizing primary, secondary, and tertiary legal materials, as well as qualitative analysis. The results of the study indicate that normatively, the bankruptcy process is simple, fast, and low cost, with the main requirement of two creditors and one debt that is due. However, in practice, obstacles still exist, such as the misuse of bankruptcy petitions, weak debtor protection, and differences in judicial interpretation. Therefore, improvements to regulations and judicial practices are needed to make the bankruptcy system fairer and more effective.