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Insolvency generally denotes the state of a person whose liabilities are more than his assets.
There are two principal laws available to a corporation seeking debt relief. These are, (1) the
Insolvency Law and (2) Presidential Decree No. 902-A.
THREE (3) PRINCIPAL SUBJECTS OF INSOLVENCY LAW:
1. Suspension of Payments
2. Voluntary Insolvency
3. Involuntary Insolvency
In accordance with the provisions of the Insolvency Law "every insolvent debtor may be permitted to suspend payments or be discharged from his debts and liabilities" (Sec. 1). Corporate debtors however are not given a discharge.
A petition for suspension of payments with a request for the appointment of a management committee or rehabilitation receiver where the corporation has no sufficient assets to cover its liabilities is a creation of PD 902-A and not the Insolvency Law.
The Insolvency Law is both distributive and rehabilitative
There are two principal laws available to a corporation seeking debt relief. These are, (1) the
Insolvency Law and (2) Presidential Decree No. 902-A.
THREE (3) PRINCIPAL SUBJECTS OF INSOLVENCY LAW:
1. Suspension of Payments
2. Voluntary Insolvency
3. Involuntary Insolvency
In accordance with the provisions of the Insolvency Law "every insolvent debtor may be permitted to suspend payments or be discharged from his debts and liabilities" (Sec. 1). Corporate debtors however are not given a discharge.
A petition for suspension of payments with a request for the appointment of a management committee or rehabilitation receiver where the corporation has no sufficient assets to cover its liabilities is a creation of PD 902-A and not the Insolvency Law.
The Insolvency Law is both distributive and rehabilitative
