Special Laws

Question 1

A debtor is considered __________ if it is unable to pay its liabilities as they full due in the ordinary course of business or has liabilities that are greater than its assets.

Answer 1

Insolvent

Question 2

A. Incurred arising from the filing of a petition.
B. Arising from court proceedings, rehabilitation or liquidation of the debtor.
C. Incurred in the ordinary course of business after the commencement date.
D. Payment of new obligations obtained.
E. Incurred for fees of the rehabilitation receiver.
F. Authorized or mandated under FRIA.

Answer 2

Administrative Expenses

Question 3

Anything of value that can be in the form of money, fixed assets, or intangibles including intellectual property, the book value of which is shown in the last three audited financial statement immediately preceding the filing of the petition.

Answer 3

Asset

Question 4

All claims or demands of whatever nature or charter against a debtor or its property, whether for money or otherwise.

Answer 4

Claim

Question 5

The date on which the court issues the Commencement Order, which shall be retroactive to the date of filing of the petition for voluntary or involuntary proceedings.

Answer 5

Commencement Date

Question 6

Any natural or juridical person which has a claim against the debtor that arose on or before the commencement date.

Answer 6

Creditor

Question 7

The date in which the court issues the Liquidation Order

Answer 7

Date of Liquidation

Question 8

A sole proprietorship duly registered with the DTI, a partnership duly registered with the SEC, a corporation duly organized and existing under Philippine laws, or an individual who has become insolvent.

Answer 8

Debtor

Question 9

The term debtor does not include?

Answer 9

Banks, insurance companies, pre-need companies, and national and local government agencies or units.

Question 10

Real or personal property of the debtor upon which a lien attaches.

Answer 10

Encumbered Property

Question 11

A creditor whose claim or a portion thereof its neither secured, preffered nor subordinated under FRIA

Answer 11

General Unsecured Creditor

Question 12

A creditor whose claim or a portion thereof its neither secured, preffered nor subordinated under FRIA

Answer 12

General Unsecured Creditor

Question 13

Financial condition of a debtor that is generally unable to pay its or his liabilities as they fall due in the ordinary course of business or has liabilities that are greater than his assets.

Answer 13

Insolvency

Question 14

Monetary claims against the debtor, including stockholders’ advances that have been recorded in the debtor’s audited financial statements as advances for future subscriptions.

Answer 14

Liabilities

Question 15

A statutory or contractual claim or judicial charge on real or personal property that legality entities a creditor to resort to said property for payment of the claim or debt secured by such lien

Answer 15

Lien

Question 16

Natural person or juridical entity appointed as such by court and entrusted with such powers and duties, that as a juridical entity, it must designate a natural person who possesses all the qualifications as provided in its Act.

Answer 16

Liquidator

Question 17

The ownership interest of third parties in property held by the debtor, including those covered by trust receipts or assignments of receivables.

Answer 17

Ownership Interest

Question 18

A lien on property, the possession of which has been transferred to a creditor or a representative or agent thereof.

Answer 18

Possessory Lien

Question 19

The restoration of the debtor to a condition of successful operation and solvency, if it is shown that its continuance of operation is economically feasible and its creditor can recover by way of the present value of payments projected in the plan, more if the debtor continues as a going concern than if it is immediately liquidated.

Answer 19

Rehabilitation