Home
In voluntary insolvency – filing of a petition
In involuntary insolvency - the following are considered act of insolvency and the petition for
involuntary insolvency must set forth one or more of the following:
1. Intention to depart from the Philippines to defraud creditors
2. Absence from the Philippines to defraud creditors
3. Concealing self to avoid service of legal processes
4. concealing pr removing property to avoid its being attached or taken on legal process
5. confession of judgment in favor of a creditor to defraud other creditors
6. allowing default judgment in favor of a creditor to defraud other creditors
7. Allowing property to be taken under legal process in preference of a particular creditor to defraud other creditors
8. Making conveyance, assignment or transfer of his property to defraud his creditors
9. Making conveyance, assignment or transfer of his property in contemplation of insolvency
10. Default of a merchant or tradesman to pay his current obligations for a period of 30 days
11. Failure to pay money on deposit or received in a fiduciary capacity for a period of 30 days
after demand
12. Insufficiency of property to satisfy execution against him (Sec. 20)
Assets of the insolvent which are not exempt from execution will then be distributed among his creditors
in accordance with the rules of concurrence in preference of credits in the Civil Code. There is a provision in the Labor Code which says the claim of laborer’s take over and priority over all other place including taxes of the government.
In involuntary insolvency - the following are considered act of insolvency and the petition for
involuntary insolvency must set forth one or more of the following:
1. Intention to depart from the Philippines to defraud creditors
2. Absence from the Philippines to defraud creditors
3. Concealing self to avoid service of legal processes
4. concealing pr removing property to avoid its being attached or taken on legal process
5. confession of judgment in favor of a creditor to defraud other creditors
6. allowing default judgment in favor of a creditor to defraud other creditors
7. Allowing property to be taken under legal process in preference of a particular creditor to defraud other creditors
8. Making conveyance, assignment or transfer of his property to defraud his creditors
9. Making conveyance, assignment or transfer of his property in contemplation of insolvency
10. Default of a merchant or tradesman to pay his current obligations for a period of 30 days
11. Failure to pay money on deposit or received in a fiduciary capacity for a period of 30 days
after demand
12. Insufficiency of property to satisfy execution against him (Sec. 20)
Assets of the insolvent which are not exempt from execution will then be distributed among his creditors
in accordance with the rules of concurrence in preference of credits in the Civil Code. There is a provision in the Labor Code which says the claim of laborer’s take over and priority over all other place including taxes of the government.
