SEC. 14. An insolvent debtor, owing debts exceeding in amount the sum of one thousand pesos, may apply to be discharged from his debts and liabilities by petition to the Court of First Instance of the province or city in which he has resided for six months next Contents of preceding the filing of such petition. In his petition he shall set forth his place of residence, the period of his residence therein immediately prior to tiling said petition, his inability to pay all his debts by full, his willingness to surrender all his property, estate, and effects not exempt from execution for the benefit of his creditors, and an implication to be adjudged an insolvent. He shall annex to his petition n schedule and inventory in the form hereinafter provided. The filing of such petition shall be an at of insolvency.
SEC. 15. Said schedule must contain a full and true statement of all his debts and liabilities, together with a list of all those to whom, to the best of his knowledge and belief, said debt or liabilities are due, the place of residence of his creditors and the sum due each, the nature of indebtedness or liability and whether founded on written security, obligation, contract or otherwise, the true cause and consideration thereof, the time and place when and where such indebtedness or liability accrued, a declaration of any existing pledge, lien, mortgage, judgment, or other security for the payment of the debt or liability, and an outline of the facts giving rise or which might give rise to a cause of action against such insolvent debtor.
SEC. 16. Said inventory must contain, besides the creditors, an accurate description of all the real and personal property, estate, and effects of the petitioner, including his homestead, if any, together with a statement of the value of each item of said property, estate and effects and its location, and a statement of the incumbrances thereon. All property exempt by law from execution shall be set out in said inventory with a statement of its valuation, location, and the incumbrances thereon, if any. The inventory shall contain an outline of the facts giving rises, or which might give rise, to a right of action in favor of the insolvent debtor.
SEC. 17. The petition, schedule and inventory must be verified by the affidavit of the petitioner, annexed thereto, and shall be in form substantially as follows: "I, ............................, do solemnly swear that the schedule and inventory now delivered by me contain a full, correct and true discovery of all my debts and liabilities and of all goods, effects, estate and property of whatever kind or class to me in any way belonging. The inventory also contains a full true and correct statement of all debts owing or due to me, or to nay person or persons in trust for or and of all securities and contracts whereby any money may hereafter become due or payable to me or by or through which any benefit or advantage whatever may accrue to me or to may use, or to nay other person or persons in trust for me. The schedule contain a clear outline of the facts facts giving rise, or which might give rise, to a cause of action against me, and the inventory contains an outline of the facts giving rise, or which might give rise, to any cause of action my favor. I have no lands, money, stock, or estate, reversion or expectancy, or property of any kind, except that set forth in said inventory. I have in no instance created or knowledge a debt for a greater sum than I honestly and truly owe. I have not directly or indirectly, concealed, fraudulently sold, or otherwise fraudulently disposed of, any part of my real or personal property , estate. effects or rights of action, and I have not in any way compounded with any of my creditors in order to secure such creditors, or to receive or to accept any profit or advantage therefrom, or to defraud or deceived in any manner any creditor to whom I am indebted. So help me God."
SEC. 18. Upon receiving and filing said petition, schedule, and inventory, the court, or the judge thereof in vacation, shall make an order declaring the petitioner insolvent, and directing the sheriff of the province or city in which the petition is filed to take possession of, and safely keep, until the appointment of a receiver or assignee, all the deeds, vouchers, books of account, papers, notes, bonds, bills, and securities of the debtor, and all his real and personal property, estate, and effects, except such as may be by law exempt from execution. Said order shall further forbid the payment to the debtor of any debts due to him and the delivery to the debtor, or to any person for him, of any property belonging to him, and the transfer of any property by him, and shall further appoint a time and place for a meeting of the creditors to choose an assignee of the estate. Said order shall designate a newspaper of general circulation published in the province or city in which the petition is filed, if there be one and if there be none, in a newspaper which, in the opinion of the judge, will best give notice to the creditors of the said insolvent, and in the newspaper so designated said order shall be published as often as may be prescribed by the court or the judge thereof. The time appointed for the election of an assignee shall not be less than two, nor more Civil proceedings, than eight, weeks from the date of the order of adjudication. Upon the granting of said order all civil proceedings pending against the said insolvent shall be staved. "When a receiver is appointed, or an assignee chosen, as provided in this Act, the sheriff shall there upon deliver to such receiver or assignee, as the case may be, all the property, assets, and belongings of the insolvent which have come into his possession, and he shall be allowed and paid as compensation for his services the same expenses and fees as would by law be collectible if the property had been levied upon and safely kept under attachment.
SEC. 19. A copy of said order shall immediately be published by the clerk of said court, in the newspaper designated therein, for the number of times and as prescribed by the court or the judge thereof, and a copy of said order shall be delivered personally or sent by the clerk forthwith by registered mail, postage prepaid, to all creditors named in the schedule. There shall be deposited, in addition to twenty-four pesos, which shall be received by the clerk on commencing such proceedings, a sum of money sufficient to defray the expense of the publication ordered by the court, necessary postage, and ten centavos for each copy to be delivered personally or mailed to the creditors, which last-named sum is hereby constituted the legal fee of the clerk for the personal delivery or mailing required by this section.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
