Philippine Bankruptcy Law

Somebody owes me a big amount
of money that he used in his business.
Eventually,his business collapsed and up to this day,he has not paid
me a single centavo.The actual amount of his debt is 420 thousand
pesos.He first took 20 thousand from us with a check as
collateral.Then the 400 thousand with his house & lot as collateral.
The subject of bankruptcy came up when he told me that somebody
advised him that if he file for bankruptcy because his business
collapsed,he cannot be held liable for a bouncing check.When he said
that,I became worried that he may use his being bankrupt as an excuse
not to pay his debt to me.That's why I turned to the internet and
researched about Philippine Bankruptcy Law.
We have a notarized agreement that he & his wife signed when he
took the loan from us.As an additional information,me and my wife is
already living & working,here in Abu Dhabi,UAE, when he took the loan
that's why the "Mortgagee" part of the agreement was signed by my
sister-in-law as our representative.Mr. XXXXXX. is now
also here in UAE,working in Dubai.He promised us that he will pay his
debt in installment basis when he got the job here,but up to now he
has not paid us anything and we cannot reach him by telephone neither.
We are going on vacation this coming April and we plan to settle this
with his relatives.The attorney that notarized the agreement told my
sister-in-law that the collateral property should have been forfeited
long time ago.But we are not interested in his property,we just want
our money back with at least one year interest as it has been three
years now since he took it.
Could you please give us some advice on this matter.And, is it really
possible for him to use bankruptcy as an excuse not to pay us?

Can I use this post as counter evidence if i decide to file case against this false statements? First, He has my house & lot as collateral. Second, we have been in contact with tim and his wife. Even messages and calls are registered in my phone. His mobile number is also with us including his office number. The good thing in UAE is that this numbers can be verified by the authorities. We have been negotiating with them on how much we can start repaying the loan so we can also retrieve our property's legal documents and be free of our liabilities and responsibilities. The real reason they do not want to agree ang negotiate on a monthly basis as per my current capability is that they no.1 they want 1 time full payment which we honestly informed them that it is not possible at this time. 2nd, they are worried that the 10% a month they are claiming cannot be claimed by them since it is illegal under the philippine law to lend money and collect such high interest. Not to consider legality or registration of their business which mean they might even pay the government for gaining a lot of money on an unregistered business without paying tax. The court shall decide on that matter legally. I believe it is best to settle the matter in court since we have been reiterating our intent to solve the matter amicably by way of monthly payment which they are not in position to accept. Please refrain from posting unconfirmed or bias personal issues. We also reserve our right to use this public scrutiny by way of public postings should we decide to claim for moral damages.

here's a first, actual parties colliding in our forum. i wasn't a member yet when this was posted.

if you wish to save it as evidence please do take your screenshot and save the page now. if you want me to remove your name, please send me a pm and i'll edit it out. i may do so anyway in 3 days even without your request.

There were no false statements on my post.All the things I mentioned are true and I have all the documents and witnesses to prove it.Having my number is not a proof that he is in contact with us.In fact,since he came here in the UAE,he never called us,we are the ones who have been calling him about his loan.I said that we cannot reach him by telephone because he stopped answering our calls more than 5-6 months back before I made the post in this forum.
As to his reply against my post,it contains more libelous claim that he cannot prove.First,lending money was never our business.I have been an OFW since 1992,earning more than enough money for my family's needs.I never have to resort to any kind of business,legal or otherwise,to earn extra money.He was the one who sought our financial help for his struggling business through an agent.We only agreed to lend him that big amount of money because he promised to pay back in three months as stated on the document that he & his wife signed. Second,the interest is not 10% per month,it's only 7%,5% for us & 2% for the agent.Again,this fact is in the document that he & his wife signed back in April 2007.
He has the guts to even think of filling a case against me when I am the one who should have filed a estafa case against him & his wife a long time ago.
The length of time that passed after he took our money without paying anything plus the fact that he is not answering our calls anymore,prompted me to send him a text message giving him an ultimatum to pay.That was the only time he replied back and offered to pay the principal amount on installment basis.Of course I rejected his offer because my money should have earned some interest even if it was deposited in a bank for three years.
The exchanged of messages between us happened after I made the post in this forum.
I do not want elaborate anymore on this subject,if he wanted to settle this in court,so be it.