The issue of brankrupt BMT is problematic since its settlement deals with a dilemma in which the goverment is irresponsive to that issues and the protection of customers’ fund is necessary. It is important to have a regulation of legal protection upon the brankrupt small and medium enterprises, such as BMT, dealing with a fact that many BMTs are brankrupt without having a substitutive funds. This article depicts a condition in which two BMTs in Yogyakarta, BMT Sabilul Muhtadin and BMT Al-Muthi’in, are assumed as having brankrupty, and the ways both of them made a legal protection to their customers and had some ways of settlements of their rights after that brankrupt situation. Keywords: Protection, Baitul Maal wat-Tamwil, Brankrupty
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