EFFECT OF FILING A PETITION FOR SUSPENSION OF PAYMENTS ON THE PENDING CLAIM FILED AGAINST THE PETITIONER

A distinction must be made between an INDIVIDUAL that files for suspension of payments, and a
CORPORATION that files the same.

Individual.

When an individual files a petition for suspension of payments, the applicable provisions found in the Insolvency Law provide that only those claims of unsecured creditors are stayed. Those having preferred liens may still enforce. This is found in Section 9 of the Insolvency Law which provides that the following creditors are not affected by an order of suspension of payments:

a. Persons having claims for personal labor, maintenance, expenses of last illness and funeral of the wife or children of the debtor incurred in the sixty (60) days immediately preceding the filing of the petition; and,
b. Persons having legal and contractual
mortgages.

Corporations.

When a Corporation files a petition for suspension of payments, the applicable laws are PD
902-A and the Interim Rules on Corporate Rehabilitation Promulgated by the Supreme Court. Such Rules provide for an order “staying enforcement of all claims, whether for money or otherwise, and whether such enforcement is by court action or
otherwise, against the debtor, its guarantors and sureties not solidarily liable with the debtor.” [Rule 4 (b), Section 6].

This means that “all claims against corporations, partnerships, or associations that are pending before any court, tribunal or board, without distinction as to whether or not a creditor is secured or unsecured, shall be suspended effective upon the appointment of a management committee, rehabilitation receiver, board or body in accordance with the provisions in PD 902-A.”

This stay extends to all claims, pecuniary or otherwise. Thus, even petitions involving non-monetary claims [i.e. a case to rescind a Special Power of Attorney], and unestablished claims [i.e.a labor claim in the NLRC for illegal dismissal] are stayed upon petition for suspension of payments. Only the payments of taxes are not stayed.