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 po.. Ask ko lang po kung may criminal charge po ba kung nadefault kami for 3 mos ng pagbabayad ng motor. I received a letter po kasi from the financing company and the letter indicated na kapag di raw namin masettle ung loan, they will file civil and criminal charges. But we are willing naman na po na isurrender ung motorcycle since di na rin po kayang bayaran.
Good day po.me tanong lng po sana ako.meron po akong nahiram na pera saking kaibigan.30k po ang halaga.nung july 2015.gusto po nia mangyari eh every two weeks eh tumubo ung pera nia ng 20% hindi kopo agad nhulugan or npatubuan ung perang nahiram nabigla din po ako dahil ang alam kong 5-6 eh every one month po ang interest.di po ako agad nkbyad s kny s kdhilanang npending ang pagalis ng mister ko inabot ng 3 mos.d sya nkalis.gusto po nung hiniraman ko ng pera bayaran ko is 60k na.kc po sinabi nia na nkpagpatubo n sys ng 15k sb i stop n nia ung tubo dhil d ko n kkyaning byran pa un kung lalaki p ng husto sb nia po ngpatubo n sya ng 15k at stop n ung tubo.verbal lng po usapan nmen at bandang huli po pinilit nia kong pirmahan ung papel n sinulat lng nia at sinabi nia na wala nmn dw po un kaso prng iyun ung pinagmamalaki nia n kya nia akong ipabarangay pero totoo pong aukong pirmahan un tlgng pinilit at kung ano ano po ang sinasabi nia n prng me halong pananakot po kya po gusto kong maliwanagan kung ano po ang pede kong gawin at magkno lng po ang dpt kong ibayad lng tlg s kny.hintayin kopo ang inyong reply salamat po
hello po,
Gusto ko lang po malaman kung may rights ba ang nangutang sa isang nagpapautang? Ano po ba ang mga ito, kung halimbawa umutang ka sa isang tinatawag na 5-6,? Sa case kasi ng magulang ko umutang sila ng 20k sa isang teacher. Then ang naging usapan nila at demand ng nagpautang ay Magbibigay ng 80 pesos araw araw hanggang hindi nababayaran yung principal ammount na 20 thousand. Ang demand pa kapag hindi nabayaran ay kukunin yung aming tricycle. Tama po ba iyong mga demand nila? Nakuha nila yung pera sa nagpapa utang na teacher noong mga April 2015, May financier din po yung teacher na kapawa nya rin guro sa isang Public school. Sa tuwing hindi sila nakakabayad ng boundary o ung araw araw na 80 pesos, lagi nagtetext at tawag yung teacher,. Nitong mga huling mga buwan. lagi ipinapatawag sa barangay ang aking mga magulang. Hindi po naman nila tinatakbuhan at nakakapag bayad naman po sila kahit papanu. Minsan nag text silang dalawang teacher at pinapapunta ang aking mga magulang sa kanilang eskwelahan. nagpunta naman sila upang maayos ito, ngunit sa loob ng classroom ginawa ang pag uusap. Sa kanilang pag uusap nadagdagan ang utang na principal na 20 thousand naging 26 thousand na dahil isinama yung boundary na hindi nila nabayaran. Ang ginawa nilang yun ang ikinabahala ko dahil sa sinabi nung Financier na ” yung tao na pinatay sa Campo (barangay) may utang din yun, pero hindi kami ganun” sa pagkakasabi niyang yun hinda nagbabanta na po siya? May mga case din na pinahiya at pinagalitan ang nanay ko sa harap ng tindahan namin (in public po) sa daan. sa text messages. at lagi pinapatawag sa barangay. at ngayon yung motor na po namin ang pilit na kinukuha. Ang itatanong ko po, may rights ba silang kunin yung motor namin? Ano ano po bang hakbang ang dapat naming gawin? Bago pa lang po yung trisikel namin,yung halaga ba ng utang namin ay kayang tumbasan nung traysikel para kunin nila? Hindi po namin tinakbuhan yung utang. Ano ano po ba ng mga rights na nalabag nila sa ginawa sa amin? May laban po ba kami sakaling iaakyat namin at magrereklamo kami sa City Hall kung hindi mairesolba ng barangay? Maraming Salamat po.
Ano ano po ba ang mga karapatan ng isang nangutang at nagpautang kung ito ay sa pautangan na 5-6 at ang nagpautang po ay public school teacher. Pinapahiya, sinisigawan ang nangutang in public. ( sa harap po ng tindahan sa tabi lang po ng daan). Makukuha ba nila ang property namin, kung ang halaga ng inutang ay hindi naman sapat sa halaga ng kinukuha nilang property? At bukod po doon may arawan pang porsyento patong.
hello
I just need help. I lend a money of 186,000 to my ex boyfriend last march but until now he haven’t return it. The transaction was between my father and him. there were no written contract nor promissory notes. Will I still have claim to that money? What are the necessary actions?
Thank you!
Good day
Umutang po ako sa tao ng 100k may notaryo po kmi na 10% ang interest at wala kaukulang amount kung magkanu po ang kaya kng ibigay para makabwas po ako s prinsipal.Nagbibigay po ako ng 20k ang pinakambaba every month.Inutang ko po siya ng febuary 23 2015.Huli po ako nagbyad ai september ng 23k.At ang total n po ng naibayad k 160k.Ngaun po umalis n po ako sa amin.Hinahabul po niya kc d pa daw po ako byad.At ang utang k dw po ai umabut n ng 200k kasam po ang prinsipal.At nasa judge n po dw po ang papel K.Natatakut po ako makulong at madamay ang kapatid k.Kc po atm niya ang ginamit ng kapatid k ang ginamit k.Kc dun pumapasuk ang remettance k.di ko na po kaya mgbyad ng ganun kalaking halaga.Anu po b ang pwede kng gawin dahil stress n stress n po ako tlaga.Minsan iniisip ko magpkamatay pero my dalawa p akung anak.Pinipilit po kasi ng inutangan ko n 20% po interest Dahil yun dw po ang patakaran niya.Advise po pls.
hi there, i’d like to ask po of it’s true that a bank can sue me an estafa case for failing to pay salary loan? Or can they take my properties too? Thanks
Hi
I need some advice. My mother borrow P70,000 in our neighbor last April 2015. The term is my mom should be paying 10% interest each month. But due to circumstances, my father and brother lose their job, my mom failed to pay interest in July and August. The same principal amount were not settled nor lessen. On Sept 2015, my mom gave our neighbor P4,000 only because of our financial problem. This month of December, whenever she come to our house, she wont enter and she will be talking to my mom outside while there are some people chitchatting there. Is there a possibility my mom will be imprisoned? or is there also any human right that our neighbor (creditor) break? we are not running from this, just give us enough time. And I really need advises and help. My mom can’t sleep at night. 🙁
Thankyou to those who will help!
anu po ba ang dapat gawin sa isang tulad ko. na nagkautanag na d maibalik ang pera nila sa takdang araw? peru nagbabayad po ako ng interest at tubo dun sa interest pagnahuli ako ng bayad.. sabi nila kasuhan ako ng estafa. anu po bang possible mangyari sa ganitong sitwasyun?
pls. I need your advice
thank you
Hi good morning. I need help badly! Please…
Id like to ask for help. I am renting an apartment in pasig city. Since november 8 until december 8 i failed to pay my monthly rent. My monthly rental is 15,000, now i owe her 30,000 pesos already. My landlord say that she will sue me on failure on paying my rent. I have a 2 momth deposit to that apartment. I ask for her consideration but she dont want to accept. I have some financial issues last month. Please help me. I need your advice. Thank you!