The Juridical Implications of the Simple Debt Concept in Proving Bankruptcy Requirements under the Bankruptcy Law

Abstract

This study is a normative legal research analyzing the juridical implications of the simple debt concept in proving the bankruptcy requirements in Indonesia, based on Article 2 paragraph (1) in conjunction with Article 8 paragraph (4) of Law Number 37 of 2004. The research is motivated by the high potential for misuse of bankruptcy petitions as a collection tool due to the absence of an Insolvency Test and the inconsistent interpretations by Commercial Court Judges. The methodology employed utilizes statutory, conceptual, and case approaches, with a qualitative-normative analysis of primary and secondary legal materials. The findings indicate that the simple debt concept, supported by simple proof, has obscured the philosophy of bankruptcy as a collective settlement, potentially harming solvent debtors. Therefore, this study recommends a more balanced interpretative model, emphasizing the necessity for judges to conduct substantive verification of the debt's validity and proportionality. This is crucial for minimizing premature and disproportionate bankruptcy rulings and restoring bankruptcy's function as an ultimum remedium (last resort).