If the debtor does not pay a debt or an agreement is not reached, the creditor may go to court (unless it is a Public Administration that will initiate enforcement proceedings). An enforcement procedure can be initiated . This process may vary depending on whether the debt is civil, mortgage or tax, and generally includes the following steps:
Demand for payment: The creditor may request a judge to telegrama sa pilipinas issue a demand for payment to the debtor.
Seizure of assets: If the debtor does not pay, the judge may order the seizure of the debtor's assets (wages, bank accounts, properties, etc.) to enforce payment.
Auction of assets: If the debtor continues to default, the seized assets can be auctioned off to settle the debt.
The end of the life of a debt
Paid in full : the debtor pays the entire debt, either directly or through an agreement with creditors.
It expires due to prescription : if the prescription period elapses without being interrupted, the debt loses its capacity to be claimed judicially.
They are exonerated under the Second Chance Law : if the requirements are met and the debtor can prove that he cannot face the debts, the law allows them to be exonerated.
It is settled through a creditors' meeting : if the debtor files for creditors' meeting, he can reach an agreement to settle the debt under judicially agreed conditions.
Advice from lawyers to solve debts
Tip 1
The most important thing is to make a detailed analysis of your financial situation , to know what and how much you owe. Make a list of all creditors, the amount owed and the payment conditions, since abusive contracts have often been signed. A specialized lawyer can help you make a complete financial diagnosis and offer you alternatives based on your particular situation.