Scribd Logo
Upload

Welcome to Scribd!

  • Document

    Uploaded by

    Riezel Pepito
    6 views2 pages
    The document summarizes different options for individual debtors under Philippine insolvency law: 1) Suspension of payments allows a debtor who can cover all debts but cannot pay them as due to petition the court to be declared in a state of suspension of payments. 2) Voluntary liquidation allows a debtor whose assets cannot cover liabilities and whose aggregate debts are over 500,000 pesos to petition for liquidation. 3) Involuntary liquidation allows one or more creditors to petition for liquidation of a debtor with over 500,000 pesos in aggregate debts.

    Original Description:

    Original Title

    Document (1) (4)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document summarizes different options for individual debtors under Philippine insolvency law: 1) Suspension of payments allows a debtor who can cover all debts but cannot pay them as due to petition the court to be declared in a state of suspension of payments. 2) Voluntary liquidation allows a debtor whose assets cannot cover liabilities and whose aggregate debts are over 500,000 pesos to petition for liquidation. 3) Involuntary liquidation allows one or more creditors to petition for liquidation of a debtor with over 500,000 pesos in aggregate debts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    6 views2 pages

    Document

    Uploaded by

    Riezel Pepito
    The document summarizes different options for individual debtors under Philippine insolvency law: 1) Suspension of payments allows a debtor who can cover all debts but cannot pay them as due to petition the court to be declared in a state of suspension of payments. 2) Voluntary liquidation allows a debtor whose assets cannot cover liabilities and whose aggregate debts are over 500,000 pesos to petition for liquidation. 3) Involuntary liquidation allows one or more creditors to petition for liquidation of a debtor with over 500,000 pesos in aggregate debts.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    INSOLVENCY OF INDIVIDUAL DEBTORS

    SUSPENSION OF PAYMENTS (Sec. 94)

    Who may file:

    An individual debtor who, possessing sufficient property to cover all his debts but foreseeing the
    impossibility of meeting them when they respectively fall due.

    How to initiate:

    File a verified petition that he be declared in the state of suspension of payments by the court of the
    province or city in which he has resided for 6 months prior to the filing of his petition.

    Contents of the Petition:

    He shall attach to his petition, as a minimum: (a) a schedule of debts and liabilities; (b) an inventory of
    assets and (c) a proposed agreement with his creditors.

    VOLUNTARY LIQUIDATION (Sec 103)

    who may file:

    An individual debtor whose properties are not sufficient to cover his liabilities.

    Minimum amount of aggregiate Debts:

    The debts must be at least five hundred thousand pesos (P500,000)

    How to initiate:

    File a verified petition with the court of the province or city in which he has residedfor six months prior
    to the filing of such petition.

    Contents of the Petition:

    He shall attach to his petition a schedule of debts and liabilities and an inventory of assets.
    The filing of such a petition shall be an act of insolvency. Acts of insolvency need not be alleged.

    Effect of absence of Debtor:

    The debtor is not absent as he files the petition.

    Posting of Bond:

    Posting of the bond by creditors not required.

    INVOLUNTARY LIQUIDATION (Sec. 105)

    who may file:

    Any creditor or group of cteditors.

    Minimum amount of aggregate debts:

    The debts must be at least five hundred thousand pesos (P500,000)

    How to initiate:

    File a verified petition for.liquidation with the court of the province or city in which the individual debtor
    resides.

    Effects of absence of debtor:

    appliea even in the case of an absent debtor under Sec. 108 of the FRIA

    Posting of Bonds: The petitioning creditors shall post a bond in such sum as the court shall direct,
    conditioned that if the petition for liquidation is dismissed by the court, or withdrawn by the petitioner.

    You might also like