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Voluntary Liquidation of Individual Debtor

The document compares voluntary and involuntary liquidation of an individual debtor under Philippine law. Voluntary liquidation occurs when the debtor files the petition, is insolvent, and has over P500k in debt. Involuntary liquidation occurs when creditors file the petition after proving acts of insolvency, the debtor is insolvent and has over P500k in debt, and occurs even if the debtor is absent. Creditors must post a bond for involuntary liquidation and it requires a trial before a liquidation order is issued.

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191 views

Voluntary Liquidation of Individual Debtor

The document compares voluntary and involuntary liquidation of an individual debtor under Philippine law. Voluntary liquidation occurs when the debtor files the petition, is insolvent, and has over P500k in debt. Involuntary liquidation occurs when creditors file the petition after proving acts of insolvency, the debtor is insolvent and has over P500k in debt, and occurs even if the debtor is absent. Creditors must post a bond for involuntary liquidation and it requires a trial before a liquidation order is issued.

Uploaded by

TeacherEli
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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VOLUNTARY LIQUIDATION OF INDIVIDUAL INVOLUNTRARY LIQUIDATION OF INDIVIDUAL

DEBTOR DEBTOR
1. Debtor is insolvent 1. Debtor is insolvent
2. Acts of insolvency need not be alleged 2. Creditors must prove acts insolvency
and proved
3. The debts must be at least P500k 3. The debts must be at least P500k
4. The individual debtor files the Petition 4. A creditor or group of creditors files the
Petition
5. The debtor is not absent as he files the 5. Applies even in the case of Absent Debtor
Petition (Debtor resides outside or has departed from the
Philippines, cannot be found or conceals himself
(Sec.108 FRIA)
6. Posting of Bond by creditors not required 6. Posting of Bond by creditors is required
(Sec.105 FRIA)
7. Liquidation Order is issued without trial 7. Liquidation Order is issued after trial. (Sec.107
FRIA)

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