How much will be the cost for filing a bankruptcy

Hello:
Filing for bankruptcy in the Philippines is a legal process governed mainly by the Financial Rehabilitation and Insolvency Act (FRIA) of 2010 or Republic Act No. 10142. This law allows individuals or corporations who are unable to pay their debts to either restructure their finances or be declared insolvent by the court.

For an individual debtor like you who owes money through online lending applications, you can file for Voluntary Insolvency under Rule 3 of the Financial Rehabilitation Rules of Procedure (A.M. No. 15-04-06-SC). This applies if your debts exceed your assets and you can no longer meet your financial obligations as they fall due.

a.) Cost and Filing Fees – The overall cost depends on where you file. Generally, filing fees before the Regional Trial Court (RTC) range from ₱5,000 to ₱10,000, plus additional publication costs of about ₱10,000 to ₱20,000 for the required notice in a newspaper. If you engage a lawyer, the professional fees for preparing the petition, appearing in court, and handling publication and coordination with the receiver or court may range from ₱35,000 to ₱80,000, depending on the complexity of your debts and number of creditors.

b.) What the Process Does – Once filed, the court may issue a Stay Order, which temporarily stops creditors and collection agencies (including online lenders) from harassing you, filing cases, or collecting while the court determines your insolvency. After the proceedings, your assets may be liquidated to pay debts in an orderly way. Once completed, you are discharged from remaining unpaid debts, except for certain obligations like taxes or child support.

c.) Remedies Before Filing – Sometimes, it may be more practical to first explore debt restructuring or negotiated settlement before filing in court, especially if your total debt is manageable. We can assist in sending legal notices to these lending agencies to stop harassment and propose settlement arrangements.

Presuming this is within Philippine jurisdiction, our Recososa Law Firm regularly handles bankruptcy and debt relief cases for individuals nationwide. We have offices in Luzon, Visayas, and Mindanao, and we can schedule an initial consultation via Google Meet, Zoom, or in person at any of our branches.

If this answer helps you, I hope it’s not too much to ask to like and share our Facebook and Google pages below.

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Hello: Filing for bankruptcy in the Philippines is a legal process governed mainly by the Financial Rehabilitation and Insolvency Act (FRIA) of 2010 or Republic Act No. 10142. This law allows individuals or corporations who are unable to pay their debts to either restructure their finances or be declared insolvent by the court.

For an individual debtor like you who owes money through online lending applications, you can file for Voluntary Insolvency under Rule 3 of the Financial Rehabilitation Rules of Procedure (A.M. No. 15-04-06-SC). This applies if your debts exceed your assets and you can no longer meet your financial obligations as they fall due.

a.) Cost and Filing Fees – The overall cost depends on where you file. Generally, filing fees before the Regional Trial Court (RTC) range from ₱5,000 to ₱10,000, plus additional publication costs of about ₱10,000 to ₱20,000 for the required notice in a newspaper. If you engage a lawyer, the professional fees for preparing the petition, appearing in court, and handling publication and coordination with the receiver or court may range from ₱35,000 to ₱80,000, depending on the complexity of your debts and number of creditors.

b.) What the Process Does – Once filed, the court may issue a Stay Order, which temporarily stops creditors and collection agencies (including online lenders) from harassing you, filing cases, or collecting while the court determines your insolvency. After the proceedings, your assets may be liquidated to pay debts in an orderly way. Once completed, you are discharged from remaining unpaid debts, except for certain obligations like taxes or child support.

c.) Remedies Before Filing – Sometimes, it may be more practical to first explore debt restructuring or negotiated settlement before filing in court, especially if your total debt is manageable. We can assist in sending legal notices to these lending agencies to stop harassment and propose settlement arrangements.

Presuming this is within Philippine jurisdiction, our Recososa Law Firm regularly handles bankruptcy and debt relief cases for individuals nationwide. We have offices in Luzon, Visayas, and Mindanao, and we can schedule an initial consultation via Google Meet, Zoom, or in person at any of our branches.

If this answer helps you, I hope it’s not too much to ask to like and share our Facebook and Google pages below. It truly inspires us to continue helping others who are struggling financially.

ChatGPT can make mistakes. Check important info.