Perhaps you’ve heard someone making threats to file criminal cases against debtors who fail to pay. On the other hand, perhaps you’ve heard about the rule that no one can be imprisoned simply because of a debt in the Philippines. The prohibition against imprisonment for a debt is a basic right enshrined in no less than the Philippine Constitution. Article III of the Constitution reads:
“No person shall be imprisoned for debt or non-payment of a poll tax.”
REASON FOR NON-IMPRISONMENT
The Supreme Court explained the rationale for this prohibition in the case of Lozano vs. Martinez:
. . . Viewed in its historical context, the constitutional prohibition against imprisonment for debt is a safeguard that evolved gradually during the early part of the nineteenth century in the various states of the American Union as a result of the people’s revulsion at the cruel and inhumane practice, sanctioned by common law, which permitted creditors to cause the incarceration of debtors who could not pay their debts. At common law, money judgments arising from actions for the recovery of a debt or for damages from breach of a contract could be enforced against the person or body of the debtor by writ of capias ad satisfaciendum. By means of this writ, a debtor could be seized and imprisoned at the instance of the creditor until he makes the satisfaction awarded. As a consequence of the popular ground swell against such a barbarous practice, provisions forbidding imprisonment for debt came to be generally enshrined in the constitutions of various states of the Union.
This humanitarian provision was transported to our shores by the Americans at the turn of the century and embodied in our organic laws. Later, our fundamental law outlawed not only imprisonment for debt, but also the infamous practice, native to our shore, of throwing people in jail for non-payment of the cedula or poll tax.
In other words, no one can be compelled to pay a debt under pain of criminal sanctions (estafa is a different matter). No one can be imprisoned for non-payment of debt. The remedy of the creditor is civil in nature.
Let’s examine some laws that were questioned, albeit unsuccessfully, on the ground that these laws violate the constitutional prohibition against non-imprisonment for debt.
BOUNCING CHECKS
Bouncing Checks Law (BP 22) does not punish the non-payment of an obligation. The law is not designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under pain of penal sanctions, the making of worthless checks and putting them in circulation. Checks have become widely accepted as a medium of payment in trade and commerce, and if the confidence in checks is shaken, the usefulness of checks as currency substitutes would be greatly diminished. When the question was resolved in 1986, it had been reported that the approximate value of bouncing checks per day was close to 200 Million Pesos, thereafter averaging between P50 to P80 Million a day. (Lozano vs. Martinez)
TRUST RECEIPTS
The same argument was raised against the Trust Receipts Law (Presidential Decree No. 115). The passage of P.D. 115 is a declaration by the legislative authority that, as a matter of public policy, the failure of a person to turn over the proceeds of the sale of goods covered by a trust receipt (or to return said goods if not sold) is a public nuisance to be abated by the imposition of penal sanctions.
It punishes the dishonesty and abuse of confidence in the handling of money or goods to the prejudice of another. The law does not seek to enforce payment of a loan. (Tiomico vs. CA)
CREDIT CARDS
Under the Access Devices Regulation Act of 1998 (Republic Act No. 8484), anyone who obtains “money or anything of value through the use of an access device, with intent to defraud or with intent to gain and fleeing thereafter” is criminally liable.
R.A. 8484 provides for a presumption: a cardholder who abandons or surreptitiously leaves the place of employment, business or residence stated in his application or credit card, without informing the credit card company of the place where he could actually be found, if at the time of such abandonment or surreptitious leaving, the outstanding and unpaid balance is past due for at least 90 days and is more than P10,000, shall be prima facie presumed to have used his credit card with intent to defraud.” We are still waiting for the test case on this.
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sadpreggy 🙁
im also in the same situation,i am being harrassed by this credit company for installment payment basis for appliances.I am answering their calls and texts and also tring to explain my situation but still they are continously sending me harrassing texts regarding my payment.I am 7mts pregnant and im in a critical situation thats why i need to stop working. Can i file a case against them if something bad happened to me and my baby because of the stress that htey are causing? Please be advised,thanks.
I do have a same case with greg, nung una nakakapagbayad ako tapos nagkaroon ako problema financial, pwd ba akong sabihan ng atty na ipapa warrant of arrest kita pag di ka nakapagbayad today, kasi tumatawag sila at sinasabihan ako magbayad ganitong araw kaso di ko natutupad kasi wala ako mahiraman nakikiusap ako kung pwd sa ganitong araw na lang , di sila pumapayag parateng panakot nila ififile na namin itong case at minsan pinatawag pa yung police na mag aarrest sa akin, tama po ba yun? nawawala din po rights namin, magbabayad naman pero di ganun kalaki, pwd po bang mag file sa bank ng bankrapcy at mag promise to pay unti unti matapos lang?
same with greg;s problem, pero puwede rin po ba mag declare ng bankrapcy sa bank at mag promise bayaran yung loan unti unti, napunta na kasi sa atty account ko, ang hirp makipag usap sa secretary pa lang nila, nagdedemand ganitong araw magbayad at ganitong amount, di ka na nga makapag bayad sa collector ng bank tapos pinasa pa nila sa atty na mas lumaki, paano na po rights namin na gusto namin magbayd kaso ganun pa ginawa ng bank, ang law po bang ginawa ay favor lang sa bank paano naman po kami? di naman milyon ang nahiram, tama rin po ba na patawagin ng atty ang police sa bahay na nagsasabi na may complaint si atty na ipa arrest ako ganung di pa natatapos ang araw na magbabayd ako, tama po ba yung ipaarrest ako agad? di ko kasi alam ang mga procedures bakit ganun, subpoena kailan po ba ito pumapasok? nagkakaroon na ako ng anxiety at depression sa mga sinasabi ng secretary pa lang ng atty, mas matapang pa sa atty parang sa kanya ako may utang
Hi po ask ko lng regarding my situation,im an ofw ,then may hiram po ako sa ksamhn ko,,but dn pauwi na xia sa pinas,i told het na sa sahod o nxthmonth ako mgbyd ipdala ko sa knya,5’6 lng po na utng yon wala pong mg documnt na pinepermhn..ngayon ayaw nya po pumyg,,tinatakot nya po akong iparepat at ipakulong..idamay po nya family ko at bf ko,,pingbantaan po ako..posible po ba yong mga pnakot nya sakin? Mgbyd nmn po ako,,dko po alam ang gagawin,,punthn nya dw bhay ko sa pinas kukunin mga gamit ,ano po pwede kung gawin?
Hi sir,
Naguluhan na po ako sa problema ko, regarding sa motorcycle na inutang ko sa isang financing, the contract ends march 23, 2016, pero may 8 months pa akong hindi nabayaran plus penalty to sum up 25k+ lahat. Today ngbayad ako ng 5,ooo partial payment pero hindi nila tinanggap ,kasi gusto nila ipa deposit ang motor sa office nila. which is not ayoko pong mangyari and sabi pa nila na process na po ang docs for legal action kung hindi ko e deposit tomorrow ang motor.
MAy question: Ano ho ang gagawin ko na hindi po maabot sa korte ang issue na to, kasi wla akong maka usap na iba ung isang tao lng na representative sa financing, pati ung branch manager hindi mkig usap sakin. I’ll pay my debt full within this month- staggard payments. Pero lage nilang reply sa korte nlng daw ako mg expalin..
Thanks for your time reading on this.
Salamat sa tulong..
Hi good day!
Ask lng po ako, meron po akong credit card at meron akong plan sa globe, ung sa credit card ko eh 4 months ako nag babayad pero parang d bumababa ung payment ko lumalaki lng siya at d ko nlng binayaran hanggang ngaun. And sa globe plan ko namn e 1 month plng ung plan ko ung bill ko ang laki dn. E d ko na rn binayaran. Anu ang mangyayari sa akin? Mag file ba sila ng estafa sa akin? Makukulong ba ako? Pls response. Thank you
Can the company sue me for not finishing my contract? It is stipulated in my contract that I am liable to pay 50,000 if I don’t finish my contract. Hopefully you can help me thanks.
Hi ano po pwedi e kaso sa Hindi pagbabayad ng utang..wala pa kasing penirmahang mga papeles..at ano ho ba ang dapat Kong gawin para mabalik sa akin yong inutang niya?
Maari ho ba akong makipag-ugnayan sa mga barangay councils?
Plz answer poh..
Salamat
I have a debt abroad by using credit cards. Unfortunately, I lost my job there and now back here in Manila. Can they put me in prison for misfortune that happened to me by not paying them full amount of what I owe them from their credit cards.
Best regards,
RXT
Good day po hingi po sana ako sa opinion nyo maam/sir,
Ano.po ba dapat namin gawin?
Nanganak po ang aking kapatid last april,nabayaran na po namin ang hospital bill ng kapatid ko dahil hindi nila e discharge pag d kami nkabayad.kaso ang baby ay naiwan sa nicu dahil premature sya inoperahan nila dahil may barado daw sa bitoka. first attemp hindi tinapos dahil d daw.makayanan ng baby if ipagpatoloy,after 5days 2nd attemp ng operation pina bili pa kmi ng gamot pra daw maging stable ang pump ng heart upon operation.suddenly namatay ang baby after 2 days.hindi pa kmi ipalabas ng hospital until d daw namin ma settle ang bill namin na 309k wla po talaga kming ganong halaga dahil kakabayad a namin sa bill ng pag discharge ng nanay.we were being hold in the hospital for more than 4 until we ask help from our friend and she said mali daw yun may batas na bawal e hold ang pasyente lalot patay na.na discharge kmi hindi namin nabayaran ang bill after 5 days na mailibing ang baby bumalik ang kapatid ko sa hospital pra humingi ng tolong pra sa pcso but they refuse to give us any docs and endorsement so wla na talaga kmi mapuntahan.until now hindi pa kami nkabayad dahil wla talaga kaming pera.they were threatening us na kakasohan daw kami ng estafa.makakasohan po ba kmi nyan if d kmi makabayad?we really done have money na ganun kalaki.sana po mabigyan nyo po ako ng advise kung ano po ba dapat namin gawin please po.salamat