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Act No. 1956 Section 60

Section 60

SEC. 60. No creditor, proving his debt or claim, shall be allowed to maintain any suit therefor against the debtor, hut shall be deemed to have waived all right of action and suit against him, and all proceedings already commenced, or any unsatisfied judgment already obtained thereon, shall be deemed Io be discharged and surrendered thereby; and after the debtor's discharge, upon proper application and proof to the court having jurisdiction, all such proceedings shall be dismissed, and such unsatisfied judgments satisfied of record: Provided, That no valid lien existing in good faith shall he thereby affected. A creditor proving his debt, or claim shall not be held Io have waived his right of action or suit against the debtor when a discharge has been refused or stay of action. the proceedings have been determined without a discharge. No creditor whose debt is provable under this Act shall he allowed, after the commencement of proceedings in insolvency, to prosecute to final judgment any action therefor against the debtor until the question of the debtor's discharge shall have been determined, and any such suit or proceeding shall, upon the application of the debtor or of any creditor, or the assignee, be stayed to await the determination of the court on the question of discharge: Provided, That the amount due to creditor is in dispute, the suit, by leave of the court in insolvency, may proceed to judgment for the purpose of ascertaining the amount due which amount, when adjudged, may be allowed in the insolvency proceedings, but execution shall be stayed as aforesaid.

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Other provisions in CHAPTER VIII

Compiled from an official source version. Later amendments or repeals may not be reflected; the official text prevails. · Read the official text ↗ · Data as of 2026-07-04

CitationAct No. 1956 Section 60 (LawPlayer, data as of 2026-07-04)

Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).

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