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EFFECT OF INSOLVENCY PROCEEDINGS FILED BY INDIVIDUAL DEBTORS:
1. Suits pending in court
a. secured obligations suspended until assignee appointed
b. unsecured obligations terminated except to fix amount of obligation
c. foreclosure suits pending continue
2. Suit not yet filed - cannot be filed anymore, but claims may be presented to assignee
NOTE: The result is different if the petitioner is a CORPORATION, because under the Revised Rules
on Corporate Recovery, ALL claims, whether secured or unsecured, are stayed.
1. Suits pending in court
a. secured obligations suspended until assignee appointed
b. unsecured obligations terminated except to fix amount of obligation
c. foreclosure suits pending continue
2. Suit not yet filed - cannot be filed anymore, but claims may be presented to assignee
NOTE: The result is different if the petitioner is a CORPORATION, because under the Revised Rules
on Corporate Recovery, ALL claims, whether secured or unsecured, are stayed.
