3 Classifications of Creditor in Bankruptcy

Today’s #BILLawFact will discuss about the legal basis for differences in the position of creditors in bankruptcy as regulated in the Article 1131 and 1132 of the Indonesian Civil Code.

Art. 1132 of Civil Code: “The properties serve as joint guarantees for his creditors; the proceeds thereof is to be divided among the creditor in proportion to their loan, unless there exists a legal order of priority among the creditors.” Complete classifications of the creditors are listed in the infographic below.