SUSPENSION OF PAYMENTS PROCEDURE

START

Verified petition filed in court +

attachments:
1. Schedule of debts and liabilities
2. Inventory of assets
3. Proposed agreement

Sufficient in
form and
substance?

YES

Court issues an
ORDER within 5
days from filing of
petition

Creditors
meeting

Clerk of court records

the creditors present
and the amount of
claims

Commissioner
examines the
written evidence of
the claims

NO
END
No order will be
issued

Protests against
majority vote are
drawn up

YES

NO

MAJORITY VOTE
Concurrence of the ff.:
1. No. of creditors 2/3 of the
creditors voting
2. Value of claims claims represent
at least 3/5 of total liabilities of
debtor mentioned
in the petition

YES
NO
The commisioner,
individual debtor, and
all the creditors who
voted sign the
affirmed propositions

COURT ORDER
CONFIRMING
APPROVAL OF
PROPOSED
AGREEMENT OR
ANY
AMENDMENT

NOT
APPROVED

Any creditor who

dissented from and protested
against the vote of majority FILES
an OBJECTION within 10 days
from the date of last
creditors meeting

APPROVED
END
Court annuls majority vote to
approve the proposed
agreement or amendment

END
Proposed
agreement or
amendment
becomes
BINDING upon all
creditors s.t.
exceptions

Voting

The creditors and

individual debtor
discuss the propositions
in the proposed
agreement

REJECTION OF
PROPOSED
AGREEMENT

Proceedings
terminated

END
Parties shall be at liberty to
enforce the rights which
correspond to them

Commissioner
declares the
meeting open for
business

YES

NO

QUORUM
Creditors present
hold at least 3/5 of the
liabilities
of the individual
debtor