How does an individual file for insolvency over credit-card debt in the Philippines?

People searching how to file bankruptcy on credit card debt in the Philippines are usually asking about individual insolvency. Under RA 10142, these individual-debtor procedures apply to a natural person who is both a resident and citizen of the Philippines and who meets the Act's insolvency definition. Republic Act No. 10142, the Financial Rehabilitation and Insolvency Act of 2010, provides two different court routes for an individual debtor in the situations described below.

Suspension of payments

Section 94 applies to an individual who has enough property to cover all debts but foresees being unable to pay them as they fall due. The person may file a verified petition in the court of the province or city where the person has lived for the six months before filing. The petition must at least include a schedule of debts and liabilities, an inventory of assets, and a proposed agreement with creditors.

This route seeks a court-supervised arrangement. Section 96 says secured property is not covered by the possible suspension order, and the law sets conditions for creditor proceedings and acceptance of an agreement. Filing is not the same as automatic approval.

Voluntary liquidation

Section 103 addresses a different position: an individual whose property is not sufficient to cover liabilities and whose debts exceed PHP500,000. That person may apply for discharge through a verified petition in the court of the province or city where the person has lived for the previous six months. A schedule of debts and liabilities and an inventory of assets must be attached.

The statute does not say that every person with credit card debt qualifies, or that filing immediately removes the debt. The choice of route depends on the person's assets, liabilities, secured obligations and other facts. This page is a summary of the statutory starting points, not legal advice for an individual case.