<![CDATA[Civil law provides bankruptcy and suspension of debt payment obligations as legal mechanisms for resolving business financing and debt problems. In practice, bankruptcy petitions may involve claims of relatively modest value, even though a bankruptcy declaration can produce consequences that are far more severe, including the termination of the debtor's business activities. This study examines solutions to substantive weaknesses in Law Number 37 of 2004 concerning Bankruptcy and Suspension of Debt Payment Obligations, particularly in relation to the work of curators and administrators. A socio-legal approach with a descriptive-analytical design is employed. Primary data were obtained through interviews, while secondary data were collected through literature review. The study finds that bankruptcy decisions are strongly based on Article 2 of Law Number 37 of 2004, which does not establish a minimum debt threshold and may therefore create unequal outcomes. The principal substantive weaknesses identified include bankruptcy requirements that tend to favor creditors, PKPU arrangements that provide insufficient support for debtors to maintain their businesses, creditor dominance in PKPU proceedings, and the absence of a financial fresh-start mechanism for debtors who are genuinely unable to repay their obligations.]]>
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