Heat garlic and butter in a small skillet over medium heat. Cook and stir until garlic softens, about 2 minutes. Reserve.
Spoon the sauerkraut into the bottom of a 9x13 inch baking dish; top with the chicken pieces. Scatter potatoes around the chicken, and sprinkle with the cooked garlic. Spoon some of the sauerkraut over the top of the chicken. Cover dish with aluminum foil.
Bake in preheated oven until the chicken cooked through, and very tender, about 1 1/2 hours.