Legal Protection for Concurrent Creditors in Settling Bankrupt Debtors’ Wealth

In Indonesia, the bankruptcy institution becomes a solution for the issue of debt and loans when a debtor no longer has the capability to repay their debt to creditors. Concurrent creditors who do not have collateral or special rights will have their debt repaid after the debt of separatist and preferential creditors has been fulfilled. This research employed the normative method with case approach which analyzed literary materials using the statute and conceptual approaches. It also applied the legal and case study approaches. Research results showed that legal protection for concurrent creditors in the settlement of bankrupt debtors’ wealth is crucial, considering that the debt repayment for separatist and preferential creditors is prioritized compared to concurrent creditors. Thus, the debt owed to concurrent creditors may not be repaid if the assets of the bankrupt debtors are only enough to repay their debt to separatist and preferential creditors. This research is important considering that debtors often use bankruptcy mechanisms with the wrong intention of avoiding paying their debts. The institution goes bankrupt, so the debt is considered gone, even though this is actually due to the debtor's bad intentions.