How ( and ) Do Filipino People Declare Bankrupcy?
I have a Filipino friend who is up in arms because the mother of the family borrowed P25,000 from the bank to start a business but the business has failed. The family is afraid that the bank is going to take away their home and furniture. The bank is actually sending them legal letters and they don’t know what to do.
Do you have bankruptcy laws similar to US ones? Like chapter 7 and chapter 13? If you do, how can people file for for it to stave away creditors? How is it done exactly? Any advice on what can be done in this case? What would be a good scenario? Does one need a lawyer? How does one file? How much does it cost?
I have texted that family and they do not even know what bankruptcy is.
A lot of foreigners I am sure have Filipino friends in such trouble but we cannot advise them because we do not know how it goes with such things there.
Any info on bankruptcy there would be most helpful not only to this family but to so many other Pinoy families that are our friends.
March 28th, 2009 at 1:59 pm
Loans from the banks are not advisable because of high interest rates.In cases such as this one, the bank can`t force the family to pay the amount if the business gone bankruptcy. The bank only issues the loanable amount if the debtor has “collaterals” so that in cases that he can`t pay the amount, the bank can take those collaterals in lieu of the amount due.
The bank has grace period for the family/individual to pay the amount. The family/individual could write a letter to extend the grace period or get a legal counsel for this matter.
March 29th, 2009 at 1:25 am
I am not aware of any bankrupcy protection/law in philippines so I guess some just hide with what’s left with them.
March 29th, 2009 at 10:44 am
I think there’s no bankruptcy laws here in the Philippines. If your friend have their property as collateral for money loans then they agree what the banks stated conditions. But still they can appeal for months to pay the debt before their property being cease by the bank. Some banks gives a grace period notice for the loaners to pay the debt.
Only company or establishment can declare bankruptcy, so that they are not obliged to pay some separation pay and incentives for their employees.
March 31st, 2009 at 11:02 am
No such animal here in the Philippines. You owe , you owe forever !
April 2nd, 2009 at 8:46 pm
Yes you can file for Bankruptcy here in the Philippines, but it will cost more them 25T pesos, the best thing is to work with the bank and let them know if you can’t get things worked out then you’ll file for Bankruptcy. Here is a firm they can contact:
GAPUZ & ASSOCIATES LAW OFFICES
Ground Floor, Pelaez Sports Center
Don Apolinar Velez Street
Cagayan de Oro City, Philippines
Tel. Nos.: (08822) 72-25-41; (08822) 72-82-37
Fax No.: (088) 856-27-13
E-Mail: or
Contact Person: Atty. Armando S. Kho
Area/s of Practice: Administrative Law, Alternative Dispute Resolution, Bankruptcy, Civil Law, Commercial Law, Constitutional & Political Law, Corporations & Business Organizations, Criminal Law, Education, Election Law, Family & Personal Law, General Practice, Government Agencies, Government Contracts, Labor & Employment, Legal Ethics & Professional Responsibility, Litigation, Military, Probate, Real Estate, Trusts & Estates.