Bankruptcy Petition (Creditor)
Preparing and filing bankruptcy petitions — documentation, evidence, and court representation.
Surabaya · East Java · Indonesia
Bankruptcy Lawyer Surabaya — Insolvency & Commercial Court Proceedings
Integra Law Office handles bankruptcy (kepailitan) proceedings in Surabaya — representing debtors facing insolvency and creditors seeking asset recovery. We manage cases before the Commercial Court at the Surabaya District Court with direct partner involvement.
Bankruptcy proceedings in East Java.
Bankruptcy in Indonesia is governed by the Bankruptcy and PKPU Law (UU 37/2004). A debtor can be declared bankrupt by the Commercial Court if they have at least two creditors and have failed to pay at least one debt that is due and payable. The threshold for filing is deliberately low — the policy favours creditor protection.
Once declared bankrupt, the debtor loses control of its assets to a court-appointed curator. The curator inventories and liquidates assets, with proceeds distributed to creditors according to statutory priority. The process is designed to be efficient, though in practice it requires experienced legal counsel to navigate effectively.
We represent both debtors and creditors in bankruptcy proceedings at the Surabaya Commercial Court. Our experience includes manufacturing companies, property developers, and trading firms — on both sides of bankruptcy petitions.
When you need a bankruptcy lawyer.
A creditor has filed or threatened to file a bankruptcy petition against your company.
You are a creditor seeking to recover debts through a bankruptcy filing.
You need to challenge a bankruptcy declaration on appeal.
You are a bankrupt debtor seeking peace (perdamaian) with creditors.
You need to file a creditor claim (verifikasi) in ongoing bankruptcy proceedings.
You suspect fraudulent conveyance by a debtor and need to pursue asset recovery.
Bankruptcy law framework.
Under UU 37/2004, bankruptcy can be declared with just two creditors and one unpaid debt. The Commercial Court has exclusive jurisdiction. The curator takes control of the bankrupt debtor's assets, and creditors must file verified claims within the prescribed timeline.
Creditor priority follows statutory ranking: separation rights (hak separasi), preferred creditors (separate claims), concurrent creditors, and subordinated creditors. Understanding this hierarchy is essential for both debtors and creditors in assessing recovery prospects.
Legal References
How Integra handles bankruptcy matters.
For creditors, we assess the viability of a bankruptcy petition before filing — evaluating the debtor's asset position, the likelihood of recovery, and alternative options. We do not recommend bankruptcy when other recovery methods are more effective.
For debtors, we explore all available options — including PKPU, out-of-court restructuring, and defence against bankruptcy petitions. When bankruptcy is unavoidable, we work to protect the debtor's interests through the curator process and negotiate the best possible outcome.
Bankruptcy Legal Services
Bankruptcy Defence (Debtor)
Defending against bankruptcy petitions — challenging creditor standing, debt existence, or procedural defects.
Creditor Claims
Filing and verifying creditor claims in bankruptcy proceedings — maximising recovery potential.
Asset Recovery
Pursuing fraudulent conveyance claims, veil piercing, and off-balance-sheet asset discovery.
Appeals
Appealing Commercial Court decisions to the Supreme Court — cassation and judicial review.
Frequently Asked Questions
What is the minimum threshold for filing a bankruptcy petition?
The petitioner must demonstrate that the debtor has at least two creditors and has failed to pay at least one debt that is due and payable. There is no minimum debt amount. The standard is deliberately low to protect creditor rights.
How long does the bankruptcy process take?
The Commercial Court must decide on a bankruptcy petition within 60 days of filing. The overall bankruptcy process — from declaration through asset liquidation and distribution — typically takes 1-2 years, depending on the complexity of the estate.
Can a bankrupt company continue operating?
In principle, the bankrupt debtor loses control of its assets to the curator. However, the curator may allow the company to continue operating if it maximises asset value — for example, selling the business as a going concern. The supervisory judge must approve such decisions.
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Request a private consultation.
Describe your bankruptcy matter. A senior partner will respond within one business day.
Last reviewed: · by Budiarmanto Setyo Hutomo, S.H., M.H.