THE INSOLVENCY LAW - TITLE AND GENERAL SUBJECT OF THE ACT

Category: Obligations and Contracts

THE INSOLVENCY LAW

ACT NO. 1956

TITLE AND GENERAL SUBJECT OF THE ACT

 
SECTION 1.    This Act shall be known and may be cited as The  Insolvency  Law,  and  in  accordance  with  its  provisionsevery   insolvent   debtor   may   be   permitted   to   suspend payments or be discharged from his debts and liabilities.
 

INSOLVENCY, DEFINED.

     Generally  denotes  the  state  of  a  person  whose  liabilities are more than his assets
     Relative condition of a man’s assets and liabilities that the former  if  all  made  immediately  available,  wouldn’t  be sufficient to discharge the latter
 

INSOLVENCY PRIMARILY GOVERNED BY CIVIL CODE

     Insolvency  shall  be  governed  by  special  laws  insofar  as they are not inconsistent with the CC
     Special law referred to is the Insolvency Law
 

PURPOSES OF THE INSOLVENCY LAW

1.   To  effect   an  equitable  distribution  of  the  bankrupt’s property among his creditors
2.   To benefit the debtor in discharging him from his liabilities and  enabling  him  to  start  afresh  with  the  property  set apart to him as exempt
 

WHAT    MAYBE    PERMITTED    OF    A    DEBTOR    BY    THE INSOLVENCY LAW

1.   To petition the court to suspend payments of his debts
2.   To be discharged from his debts and liabilities by voluntary or involuntary proceedings