Legal Protection for Creditors Who Are Harmed by Debtors (Actio Pauliana Practice)

Abstract

In essence, bankruptcy is an act by the curator in the form of a general confiscation of the entire debtor's assets that have been determined through a commercial court decision and the distribution of each creditor's receivables based on their level according to law in order to settle the debtor's debts. In bankruptcy practice, it is not uncommon for debtors to try to reduce bankruptcy assets by taking legal actions against their bankrupt assets, causing losses to creditors. To protect the rights of Creditors, actio pauliana is a means provided by law. The research that the authors use in this paper is normative legal research or so-called doctrinal legal research. In many cases, especially debtors in the form of banks, usually submit a process of delaying debt payment obligations to the debtor in order to achieve a settlement first, as PKPU aims itself. The Bankruptcy and PKPU regulations should contain what forms of legal protection will be obtained by creditors when they are harmed by the debtor himself. So when unwanted things happen, creditors can still be protected by these regulations, because if the debtor commits a legal action that is detrimental to the creditor, the creditor cannot do anything if there is no law to protect it.