Category Archives: Special Projects

Court-Supervised Rehabilitation in the Philippines: Financial Rehabilitation and Insolvency Act (FRIA)

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Rehabilitation, under the Financial Rehabilitation and Insolvency Act (FRIA) of 2010, refers to the restoration of the debtor to a condition of successful operation and solvency, if it is shown that its continuance of operation is economically feasible and its creditors can recover by way of the present value of payments projected in the plan, more if the debtor continues as a going concern than if it is immediately liquidated. The procedure and requirements are discussed below.

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Voluntary Liquidation for Individual Debtors: Options for Debtors in Financial Distress

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Voluntary liquidation, as opposed to involuntary liquidation, refers to a proceeding initiated by the debtor. An insolvent individual debtor may ask the court for protection, through an action for suspension of payments or  voluntary liquidation. Creditors of insolvent debtors, on the other hand, have the option of filing a petition for involuntary liquidation of the insolvent individual debtor. This discussion covers only voluntary liquidation in insolvency under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“, as fleshed out in the FLSP Rules. Moreover, the discussion below on voluntary insolvency proceedings applies only to individual debtors.

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The Liquidation Order: Common Provisions in Insolvency Proceedings for Individual and Juridical Debtors

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Insolvency proceedings may refer to voluntary or involuntary proceedings for individual debtors (see Voluntary liquidation and Involuntary liquidation) or juridical entities (see Liquidation proceedings). The provisions on Liquidation Order are common in all these proceedings, as provided under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“, and fleshed out in the FLSP Rules. For purposes of these common provisions, the term “debtor” includes individual debtors and other juridical debtors. 

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Avoidance Proceedings: Common Provisions in Insolvency Proceedings for Individual and Juridical Debtors

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Insolvency proceedings may refer to voluntary or involuntary proceedings for individual debtors (see Voluntary Liquidation Insolvency proceedings may refer to voluntary or involuntary proceedings for individual debtors(see Voluntary liquidation and Involuntary liquidation) or juridical entities (see Liquidation proceedings). The provisions on Liquidation Order are common in all these proceedings, as provided under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“, and fleshed out in the FLSP Rules. For purposes of these common provisions, the term “debtor” includes individual debtors and other juridical debtors. 

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The Liquidation Plan: Common Provisions in Insolvency Proceedings for Individual and Juridical Debtors

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Insolvency proceedings may refer to voluntary or involuntary proceedings for individual debtors(see Voluntary or involuntary liquidation) or juridical entities (see Liquidation proceedings). The rules on determination of claims are common in all these proceedings, as provided under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010”, and fleshed out in the FLSP Rules. For purposes of these common provisions, the term “debtor” includes individual debtors and other juridical debtors. 

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The Liquidator: Common Provisions in Insolvency Proceedings for Individual and Juridical Debtors

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Insolvency proceedings may refer to voluntary or involuntary proceedings for individual debtors (see Voluntary or involuntary liquidation) or juridical debtors (see Liquidation proceedings). The provisions on the Liquidator are common in all these proceedings, as provided under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010”, and fleshed out in the FLSP Rules. For purposes of these common provisions, the term “debtor” includes individual debtors and other juridical debtors. 

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Virtual Currency (VC) Exchanges in the Philippines: Summary of Guidelines

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A virtual currency exchange (VC exchange) refers to any entity that offers services or engages in activities that provide facility for the conversion or exchange of fiat currency to virtual currency (VC) or vice versa. Before a VC exchange can operate or do business in the Philippines, it must obtain a Certificate of Registration (COR) to operate as a remittance and transfer company (RTC).

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Avoidance Proceedings in Court-Supervised Rehabilitation for Juridical Debtors

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Any transaction occurring prior to commencement date (the date on which the court issues the Commencement Order) entered into by the debtor or involving its funds or assets may be rescinded or declared null and void on the ground that the same was executed with intent to defraud a creditor or creditors or which constitute undue preference of creditors. This is provided in court-supervised rehabilitation proceedings [see Court-Supervised Rehabilitation] under Republic Act No. 10142, also known as the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010“.

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