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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Hi i just want to make some consultations, i received a summon or letter from court regarding the debt that i was not able to pay amounting to 20,000+6000 interest. What are thebthings that i need to consider? Be waiting for your reply.. thanks.
under Philippine law, is car loan covered by bankrupcty law?
what if they ammend this law that all persons shall be imprisoned by Debt & Non-payment of poll Tax, what will be happen? Is there will be advantages of this?
Isa po akong OFW sa saudi na nawalang ng trabaho, nakapagexit po ako sa saudi ngunit may naiwan po ako loan sa banko at credit card,. ngayon po afte 1 year may collection agency na pilit pinababayad utang sa amin, since nawalang po ako ng trabaho at wala na kakayanan magbayad ng utang. mayroon po ba kaso pwede isampa sa aking ng collection agency sa pinas.
ano po ang pinaka maganda dapat gawin salamat po
Ask ko lang po…yon ppo kasing imu tangan ko ay tini treaten ako kapag hindi po ako nagbayad ay pupuntahan nya ako sa pinagtatrabahoan ko para daw mapaj=hiya ako…pagkatapos naman sinabi nya ipaparaid daw nya ako dahil may kakilala cyang CIDG.ngayon sabi na namn nya na ipa pabarangay na nya ako…ang utang ko po ay 5000 at naging 6thou na may tubo na 20% at ang alam ko ay still increasing pa ang tubo.Tama po ba itong ginawa nya sa akin sinabihan ko naman siya na makakabayd ako pagdating ng refund ko ng SSS .ano po ba ang dapat kong gawin?
Maraming salamat po..
MARNIT JUDILLA
Ask ko lang po…yon ppo kasing imu tangan ko ay tini treaten ako kapag hindi po ako nagbayad ay pupuntahan nya ako sa pinagtatrabahoan ko para daw mapaj=hiya ako…pagkatapos naman sinabi nya ipaparaid daw nya ako dahil may kakilala cyang CIDG.ngayon sabi na namn nya na ipa pabarangay na nya ako…ang utang ko po ay 5000 at naging 6thou na may tubo na 20% at ang alam ko ay still increasing pa ang tubo.Tama po ba itong ginawa nya sa akin sinabihan ko naman siya na makakabayd ako pagdating ng refund ko ng SSS .ano po ba ang dapat kong gawin?
Maraming salamat po..
Hi, my family runs a copra buying business and we provide loans to farmers without interest with agreement that they will sell their harvests to us. Sadly, a lot of them have stop paying their debts and started selling their harvest to other buyers to avoid us. Can you advise us on best way to deal with our current dilemma. Thanks
The BAYANTel Company has been harassing me for months now to pay Php. 8,095.00 for the internet that I have never used. I called them for the problems before but they never did something about it. I have been receiving texts from a law firm that tells me that they will have a field visit and even a heavier sanction for that matter.
I need a better advise from this good law company because I do not have the intention to pay something that I never consumed. They are very bad.
Hello po. Tanong ko lang anong dapat gawin kapag ganito po ang nangyari. Ung debtor po umutang binigay nya atm card nya kc factory worker sya kaya ung sahod po nya doon nilalagay ng company. Nakakuha ang creditor ng isang hulog pagkatpos po nun, ipnblock nya ung atm card nya. Dinhilan nya po sa factory na nawala ang card kaya pingawan xa ng bago. Almost 1 month na hindi pa rin sya nagbabayad. Fraud po to db? Kc sinadya nya na ipablock ang atm card nya.
hello….
i have loan from my current company then i send already reaignation letter because id like to do fucos in my business but as of now i dont have enough money to pay my loan but my wife are still in that company and also she my co-maker of that loan…but according to the HR head they want me to pay first before i leave that company or else they will file a case towards on me…
my question….what should i do regarding to this matter?
my plan is not to skip that obligation then pay it as much as possible…
i need your advice…
thank you and god bless…
this is my number…09330044425