The Settlement Of Bankruptcy Estate

The settlement is one of the main tasks performed by the curator on the management of the property of the bankrupt debtor, where the settlement can only be performed after the bankrupt debtor is completely in a state of not being able to pay (insolvency) after the decision of the bankruptcy declaration. The consequence of the Insolvency of the debtor is the settlement of bankruptcy estate will be carried out immediately.

The Bankruptcy Act has appointed the curator to handle with all the settlement activities including the management of bankrupt property. In general, it is stated in the provisions of the Article 26 paragraph (1) of Bankruptcy Act which stipulates any legal actions concerning the rights and obligations on bankruptcy assets shall be filed by or against the Curator. The curator shall conduct the settlement and sell the bankruptcy assets that shall be made or may also be carried out in private and  shall arrange the distribution list to be submitted to the Supervisory Judge for approval,  the supervisory judge can also hold the creditor meetings to determine the method to settlement (Article 184 Jo. Article 187 of the Bankruptcy Act). The distribution of the bankrupt property shall be carried out based on the order of priority, which the creditors who have a higher position shall have the right to take the payment first from other creditors whose position is lower, and among the creditors who are in the same level,are paid equally based on prorated principles.

After the curator is completed in carrying out the payment to each of the creditors based on the distribution list, the bankruptcy ends. The curator shall announce the end of the bankruptcy in the State Gazette of the Republic of Indonesia and in the newspapers (Article 202 of the Bankruptcy Act). After the last distribution is made, portions that are reserved shall be fallen back to the bankruptcy estate, or if in fact there is still a bankruptcy estate which at the time of liquidation was not yet known, upon the order from the Court, the Curator shall liquidate them and distribute them based on the previous distribution list (Article 203 of the Bankruptcy Act).

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