Owner / Proprietor
FRIA CHART
REHABILITATION
Rehabilitation Plan:
 - Approved by 50%
of total claims
 - No approval
needed if approved
by Court
Rehab Stay Order:
 - Suspends all claims,
money or otherwise,
including secured creditors
EXCEPT:
1. Pending with SC
2. Pending at quasi judicial
(discretionary on court)
3. Solidary liabilities
4. Held securities in
securities market
5. Clearing of financial inst.
6. Criminal actions
Suspension Order
 - suspends any pending
execution against debtor
Not affected:
1. Secured creditors
2. Claims for personal labor,
maintenance, expense for
last illness and funeral within
60 days before petition
OUT OF COURT
REHABILITATION
Voluntary
Involuntary
Pre-Negotiated
Creditor's Meeting
 - Attended by 3/5 of total
liabilities
 - proposed agreement
must be approved by 2/3
of creditors, representing
3/5 of total liability
ANYONE can file. Sole prop,
Partnership, Corp, or Individual
Debtor (Sec 84)
Majority of partners
SOLE
PROPRIETORSHIP
1. Majority of BOD
2. 2/3 OCS / Members
(S12)
Requirements:
1. 3 or more Creditors
2. Aggregate claim of at
Creditor / group of creditors with Voluntary
aggregate claim of: least 1M or  25% subscr'd
1. at least 1M, or capital stock / partner
contribution, whichever is
2. at least 25% of subscribed capital
higher
stock / partner's contributions
Whichever is higher PARTNERSHIP LIQUIDATION
Involuntary
Endorsed/approved by creditors
holding at least 2/3 of liabilities,
including:
1. 50% total secured
2. 50% total unsecured (S76) Aggregate debt/claim of at Liquidation Order:
least 500k  - Dissolves juridical existence
CORPORATION  - Does not affect Secured Creditors
If involuntary, must allege
any one of the facts in S105 Secured Creditor:
(Generally fraud or chance 1. If he maintains right under the lein:
to evade claims)  - value may be agreed by liquidator
Verified Petition to suspend and creditor. If less than claim, creditor
payments. Debtor must have may claim balance in proceeding
sufficient properties to cover Individual Debtor  - If value is more than claim, liquidator
liabilities, but foresee SUSPENSION OF  - vs Sole Prop: this one may give it and waive right of
redemption after receiving the excess
impossibility of meeting them as PAYMENTS does not stem from
 - Liquidator may also just give the
they fall due business relations
property, or creditor may enforce the
ATTACH: Proposed Agreement claim
***Still subject to 180-day stay order
STANDSTILL PERIOD 2. Creditor may waive rights over the
 - Agreed upon pending finalization of property and participate in liquidation
out-of-court rehab
MINIMUM REQUIREMENTS:
1. Debtor must agree
Requirements:
2. Approved by 67% secured creditor
1. Standstill is agreed upon by 50%
3. Approved by 75% unsecured
total liabilities
4. Approved by 85% total liabilities
2. Notice 1x/wk for 2wk
3. Standstill period does not exceed
120 days from effectivity