What is suspension of payments?
It is the postponement, by court order, of the payment of debts of one who, while possessing sufficient property to cover his debts, foresees the impossibility of meeting them when they respectively fall due.
When is the remedy of suspension of payments available?
The debtor who, possessing sufficient property to cover all his debts, foresees the impossibility of meeting them when they respectively fall due, may petition that he be declared in the state of suspension of payments by the court of the province or city in which he has resided for six months next preceding the filing of his petition (Sec. 2 ).