No One can be Imprisoned for Non-Payment of Debt

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):

“No person shall be imprisoned for debt or non-payment of a poll tax.”

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.

339 thoughts on “No One can be Imprisoned for Non-Payment of Debt

  1. Danilo

    Dear Sir,

    May tanong lang po ako nandito ako sa UAE ngayon at nagkaroon ako nang loan sa isang lending institution.Hindi ako nakapagbayad on time dahil sa nawalan din ako nang trabaho hanggang sa umabot na pinakulong nila ako at nakapagbayad ako nang 7000 plus UAE Derham as penalty.

    Ngayon nakatanggap na naman ako nang email galing sa pilipinas na kung hindi ako magbayad kakasohan nila ako at ipa blacklist ako sa lahat nang Gulf Conutries,please advise kung pwede ba silang magkaso sa akin sa pilipinas hence na cleared ko na to dito sa UAE at meron na akong clearance.

    Maraming salamat,

    Reply
  2. lanie

    Hi! Paano po kaya due ko po sa avon un pong ibang items po di nabayaran tapos po. ,ung iba po di na kinuha ng buyer tapps yung ibang nbayad sa akin nung ibabayad ko na po nanakawan nman ako sa bus.bale umaabot ng 15 k n ngayon kasi meron pong penalty nagkataom pp na nag kasakit din ako ginamit ko pa pp nman ang passpprt ko aa id ano po kya ang mamgyari. 2nd po yung ex husband ko po na nsa abroad nagppdala po ng monthly allowance until year 2013 nun pong 2011 biglla po akong ponadalhan ng credit card ng bank sabi niya gamitin ko daw until 2013 jan nkakabayad po ako. Ngayon dahil nag aaral pa ang bunso ko meron po kaming mga binili na mhal na items umabot po ng 40k in 1 year dahil po meron p akong ipon nun binabayaran ko lamg po yung minimum payment eh bigla pong di na sya nagpadala as in nawala na po sya.Ano po kaya ang legal implications nitio. Paano po kya. Na stroke po kasi ako kya di na po ako mkawork. Sana po meron mkapag bigay ng advuce.Salamat po

    Reply
  3. Maria

    Hi po pwde po makahingi ng legal advice, nkapagloan po kc ako sa hong kong, 5 months na po nababayaran ko, ei ngaun po dto na po ako pinas since december po at wala po ako work ngaun pero willing nman po ako magbayad once na nkahanap po ako ng work ko, panay po tawag ng collector sa ate ko, tinatakot nila ung ate ko na pupuntahan daw ng police bahay nya at ipapadlock daw nila bahay nya, at magfile daw po cla ng criminal case against me, pwde po ba ung ginagawa nilang panghaharass sa ate ko, in the first place hindi nman po sya ang nkautang

    Reply
  4. Alden Richards

    Regarding naman po sa mga hulugan na furniture, yung mga nag babahay bahay, tama po ba na kunin nila ang furniture kapag hindi naka hulog on time. Without returning my downpayments and 2months na nahulogan na. Hindi nman kasi sila tatakbuhan, delayed lang ang hulog pero kukunin nila paano naman yung mga naibayad na sa kanila hindi ba modus po yun.kasi alam ko iaalok nman nila sa iba. May laban pa ba kami sa kanila. And for sure they don’t have permit para magbenta sa Barangay namin, Please advise po. Thanks.

    Reply
  5. jcrod

    hello po..ako po ay my utang sa cashwagon online lending.4000.00 po..indi ko po nbyaran dahil po wala na po ako sa trabaho.then after a month po naconfined po anak ko.kya po nkkranas ako ng finacial problem then .my tumawag po sa akin na police officer na nagsasabi na ako dw po any bibigyan nila ng bench warrant.then sinabi nya po sakin na kausapin ko dw po ang attorney na ngsampa sakin ng kaso..d ko po npakiusapan kc final n dw po ung case laban sakin byaran ko dw po agad agad ngaung araw ung umabot na sa 10k utang ko..then tinawagan ko po ulit ung officer wala dn po nabago sa mga sinabi nya iseserve dw po tlga nila ang bench warrant at maari dw po akong makulong..bka po pwede nyo ako mbgyan ng legal advise.thank you

    Reply
  6. Mich

    Hi my friend has an outstanding balance from a salary loan from a bank. She has not paid this loan for going over a year. Within that year, she has no job and no other source of income. And up until now she has no job and is still seeking for one. Any advise for her?

    Reply
  7. Kiara

    Hi po.. pano po ito.. di ako napagbayad ng pldt bill ko… Ng 1 mo.. ilang buwan ang nagdaan sinisingil nila ako ng 5k plus.. tapos pag hindi daw.. mag fifile daw cla ng case.. tapos magbabayad daw ako ng 100k pag nag bigay cla ng demand letter .. sobrang hina po ksi ng signal nla.. tapos pag tinatawagn cstmer service d pa ma solve problema.. help me po plsss

    Reply
  8. MahirapNaPinHihirapanPa

    Ako din po just want to ask may nakukulong po ba sa di pagbabayad ng utang dahil yung company na work place ko before eh walang mapasahod samin at puro partial so nag bigay sila opportunity para makapag loan kmi thru lending company , ngayon umalis ako dun last april 5,2018 . I tried tocontact them di sila nag rereplyon how can I pay them , and then recently november 9,2018 they send me a letter regarding on the loan , makukulong po ba ako pag ganon , willing naman ako mag bayad pagnag ka trabaho ako , pero yung utang ko lang na dapat kong bayaran kasi lalong imbis na makaahon lalo na mataas interest .

    Reply
  9. Maria

    Good pm sa mga kaso po ng illegal lender na nagpapatubo ng sobrang laki San po pwede ilapit o ireklamo para matuto din sila sa obligasyon nila

    Reply
    1. Donski

      sa security and exchange commission ereklamo mga colorom yang mga lender na yan na over magpatobo panay pananakot pag dika makapagbayad lalo na yang online pilipinas loan 35% per week mga hayop… i’m a victim . Hindi ako kinonfirm tapos bigla nalang may pinasok na pera sa account ko at pag di ako makabayad sa due kakasuhan what a bullshit to them…

      Reply
  10. rafa

    hi mga sir and mam.. itatanong ko lang may hiniraman ng pera ate ko friend nya.. total of 35k sya pero ngayon ang sinisingil nya eh 48k na.. dahil sa tumubo na daw.. ang lumalabas 5-6 sya.. 2 months na hindi nababayaran ng kapatid ko dahil may inuunang tapusin na utang pero no plan para takbuhan yung nag pautang.. pero yung nag pautang keep on harassing us na ipapakulong ate ko.. ang tinutubuan parin nya yung pinautang nya to think na nag advise na kami na baka pwedeng wag na tubuan kase di na nga makabayad tutubuan pa.. ano kayang pwedeng ifile na case against dun sa tao na yun???

    advise po sana kayo about our situation.. thank you po..

    Reply
    1. Donski

      Antayin mong sila ang magkaso kasi ikaw yung humiram at ang ending nyan magbabayad ka sa capital lang

      Reply
  11. Jayne

    Good day
    Tanong ko lang po. Umutang ako sa isang online loan. Kaya lang hindi ko po nabayaran ng buo. Actually 3k lang yung inutang ko. Pero nang dahil sa na default na ako. Umabot daw ng 12k. Dapat ko daw bayaran. Pero nagbayad muna ako nga 3k. Kasi yun lang muna ang kaya ko. Pero sabi nila. Mag accumulate daw yung utang ko nga daily. Kay lumubo na daw. Maraming tumawag sa akin. Sabi they will file a case for abandonment and estafa. Pero hindi ko naalala na nag affix ako ng pirma ko. Lahat enoded. Walang pirma. Totoo bang makakasuhan ako ng estafa or abandonment? Kelangan ko na daw bayaran kasi nakasalang na daw yung kaso para sa akin. Ano ba gagawin ko?

    Reply
  12. Bettina

    Same case din yung sa PS Bank loan ko. Pero nakabayad na ako ng Php30,000 way back 2008. Bale interest na lang ang natira. Aba, last week may nagpunta sa bahay na kesyo taga-PS Bank daw kuno pero I know they are collectors na nagbabaka-sakali. Parang nangha-harass sila. Can I file a case against them?

    Reply
  13. Joy

    Hi I have borrowed 7k from an online lending. They only disbursed 6k to my bank account because of some deductions like service fee etc. Then they told me I will paying P9100 for my 7k loan.
    I were not able to pay on the due date. And they said they will file small claims on court if I don’t pay immediately 10500. I was shock by how my loan got increased. Are these computations legal? What I mean from 7k to 9k and now 10k+ ?

    Reply
    1. Donski

      Pananakot lang yan na kakasuhan di yan sila registered sa sec dahil sa sobrang laki ng interest fraud yan sila, pwedeng sila ang kasuhan sa bagong batas ni duterte na bawal na ang bombay eh mas malaki pa sa bombay. How dare them!

      Reply
  14. cathy

    good day po, just want to ask.. may utang po mother ko sa banko then they sent in a letter, upon receiving (kase ako yung naka receive) sabi ng nagdeliver kailangan ng number – in which sabi para sa record nila na nareceived ang letter. after a day or two biglang me tumatawag na sakin ng paulit ulit na ibigay ko number ng nanay ko… just want to ask if the law firm can harass me or force me to give my mothers details?
    Also another text they sent me na Estafa ang ipapatong nila na case for my mother. Can a bank debt escalated to an estafa? kase po as far as i know parang pagsinabing estafa eh fraud yun.
    Salamat po

    Reply

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