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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May utang po kc sa credit card may nagpunta s barangay namin na kukuhanin daw lahat ng ari arian namin.ang nanay ko po sobrang takot nanginig ang katawan.may sakit sya s puso.kanino po ako pwede magreklamo ng harrassment
Hi, I have unpaid credit cards almost 5 years ago since I resigned from my job I didn’t have the capacity to pay, and now I would like to settle it now in installment basis, Is it possible to do this? Please help me enlighten this.
I’d like to asked for legal assistance. My brother was a co-maker of my ex husband for a loan issuing checks for payment. Now they were served a criminal case and called for hearing. Instead they decided to work with the lender’s legal dept. I just want to know if the lender has the right to imprison them though a promisory letter and a joint agreement for payment will be made and countersigned at the lender’s office?.Pls email me answers for security purposes. Tnx!
Gooday. Is there a case if you filled your ATM lost? I was deducted for 3mnths then i filled lost because the lending company is taking everything my salary, bonuses and allowances. I’m suffering from financial crisis right now i need the money to feed my family and pay for the bills. I’m willing to make payments but i don’t want to give my ATM to them anymore.
Would like to ask an advice from you, they usedonly my name and got a summo s frm our baranggay regarding this. NO SIGNATURE AND CONTRACT HAPPENED… WHAT SHOULD I RESPONSE TO IT , DO I NEED TO APPEAR ANDHAVE MY SENTIMENTS TO OURBARANGGAY?
I have a more than 500k debt on all my credit cards, im willing to settle it but i cant afford to pay in full. Can i request them to stop the charges and pay them at least 1,000 per month each card just to settle it. I have so many obligations to and my salary is still kulang to pay all our necessities… Please advise me coz they were texting me about ra8484 and im afraid that they will file a case against me… And they were calling in the office always as early as 8am…
hi sir may tanong po ako .
meron po kc ako utang na d nababayaran sa HOME CREDIT CASH LOAN AMOUNTING P44,000
inutang ko lang po is P26,000 . then ung interest is P18,000
ngaun po minamadali po nila ako bayaran un eh wala naman po ako ganon kalaking halaga para baayran un minsanan pero willing ku naman po bayaran ..
makukulong po ba ako non ? kc nd ko cla nababayaaran ..
thanks
My Filipino fiancee’ borrowed a car from a friend to provide transportation in Cebu. She hit a little boy and killed him as he ran across the street. The family of the boy has asked for $3000.00 USD for burial, and compensation.
My fiancee’ is working at a call center as a trainee, and the company is threatening to dismiss her if she does not make restitution to the family, and the family is threatening to have her placed in jail.
I do not trust what she has to say, and she will not provide me a copy of the police report, and in addition she would not even tell me where the police station was so that I could pick her up.
I do not believe that she is truthful with me in any regard.
Can someone provide me with the truth on this matter?
Sir good day!tanong lang po.meron po akng unpaid utang from d lending company 7k nalang yong balance.pinadalhan po nila ako nang demand letter..hindi ko pinarmahan yon kasi bayaran ko day for 5 days..pinagawa nila ako nang letter stating that i will pay d whole amount on that date.kaso po hindi ko talaga na bayaran laht yan na po yong 7k na balance.sabi nila ma pa bloter na daw ako.ano pa ang stand po nito pls reply..urgent po kasi
Hi mam ask ko lng po anu ngyare sa utang nio sa lending? Ganyan din po sitwadyon ko now eh. Sabi nila mgkita nlng kmi sa korte.
Hi same din tyo ng case bale loan ng husband ko at kming dalawa ang nkapirma at 9 mos. To pay yung loan.actually fully paid na nmin yung loan kaya lang may mos. Na delay ako ng days ng bayad kase delay alotment ko. Kaya lang lagi ako tinatawagan ng niloanan nmin at sinisingil sa penalty. Ang nkakataka sobrang laki n ng penalty eh fully paid n nman kmi nabayaran n nmin yung loan. Kya lng kinukulit nila ako sa penalty.
May nakukulong ba sa di pagbabayad ng motor na kinuha ng hulugan?na Carnap kasi ang motor ko 3 months palang siya sakin nung na Carnap,wala pa akong trabaho ngayon kaya di ko pa mabayaran,ang sbi sakin ng dealer ng motor pag di pa ko nakapagbayad ngayong DEC ikkorte na dw nila,kumuha ako report galing sa ancar (anti-carnapping) nagpunta din ako sa camp crame sa TMG nag report din ako at sa LTO,may nakukulong ba sa di pagbabayad ng motor na kinuha?salamat
Pareho po tau ng problema naka 2 yrs na kmi mahigit nagbayad sa motor taz na carnap last yr motor namin kulang na babayaran is 9 months hindi na namin nabayaran gawa ng gipit na kmi at nagkataon na na diagnose ako ng cancer kaya dko na tlga nababayaran yung kulang ngayn nagpapadala ang legal team nila ng demand letter for payment kng hindi iaakyat dw nila sa korte… kmi na nga nawalan ng motor kakasuhan pa eh kng tutuusin naka 2 yrs na kmi mahigit ng bayad sa motor bago yun ma carnap…makukulong ba ako? Sana naman may sumagot…
Same po tayo pero 11 months plang saken nawala nung mismong ika 1 taon October 28 simula po nun hindi na ako nakapag hulog sobrang gipit po ako ngaun pinadalan po nila ako demand paper pero wala po syang notaryo makukulong po ba ako? and isa pa po ung sinasabi nila na demand paper pinost ng co maker ung sa kanya and syempre andun din po name ko may karapatan po ba ako mag sampa ng kaso pa reply naman po asap
Tas ipapabarangay po daw ako ng co maker ko hindi po kase ako nakakapunta sa ofis nila kase po pumapasok ako sa work.
same po tau ng problem po 3months lang din sa amin ang motor pero na carnap po at ngayon po ay pinapadalhan kami ng demand letter .. makukulong po ba asawa ko pag di po nabayaran ??
Good day everyone, need ko Lang po advice.. 13 yrs nang dead ang father ko, before yun xia namatay mai hiniraman siyang pera na ngayun an patay na rin (3yrs ago).. Here comes the niece daw nang hiniraman ni father ko kami yong sinisingil dahil utang daw yon nang papa namin at gusto nyang kaming mga anak mag bayad sa kanya dahil sya daw iniwanan ng authorization pra singilin kami.. utang ni papa is 3k plus lng ata, yan Lng na remmber ni mama na hiram pero ang sabi ng niece 10k plus daw.. do we really need to pay na matagal nmang patay ang papa ko at patay na rin yong hiniraman.. pls help.. thanks