Niko Villamor

There are many debts that cannot be proved against the estate of an insolvent person. These are prescribed claims, unliquidated claims, claims previously given fraudulent preference by the debtor, secured claims where the creditors chose to pursue security and attachments levied, judgments entered, and exceptions issued more than one month preceding the petition for insolvency. In one case, it was held that attachments and judgments which are not provable in insolvency proceedings are attachments levied within one month immediately preceding the commencement of insolvency proceedings and judgments entered in any action filed within 30 days immediately prior to the commencement of the insolvency proceedings. One purpose of the Insolvency Law is to effect an equitable distribution of the insolvent’s property among his creditors. If the insolvent debtor will be allowed to make fraudulent transfers or preferences, the distribution of the insolvent’s estate can no longer be equitable, thereby violating the object of the Insolvency Law.
The debtor may be discharged or released from all obligations prior to insolvency. Some conditions should be satisfied before the debtor’s application for a discharge may be entertained. These are 1) the application must be filed not earlier than three months nor more than one year after the adjudication of insolvency, and 2) the debtor must not have committed any of the acts enumerated by the law to prevent a discharge. Under the Insolvency Law, a debtor may be allowed to petition the court to suspend payment of his debts.
But what if a year after the debtor has been adjudged insolvent and not having paid his debts in full, he was able to acquire an outrageous fortune? Could his creditors successfully sue the debtor for the unpaid balance of his debts? The suit filed by the creditors will not prosper. After an insolvent was given a discharge by the insolvency court, the discharge will operate to free him from paying the unpaid balance of his obligations brought within the jurisdiction of the insolvency court, and also frees his future acquisitions from the payment of obligations to his creditors not fully paid from his assets during the insolvency proceedings.

As for real estate (specific immovable property), the following claims, mortgages and liens will be preferred and shall constitute an encumbrance on the immovable or real right:
1) Real estate taxes,
2) Unpaid price of the real property,
3) Unpaid wages and salaries of laborers, architects, engineers and contractors,
4) Claims for furnishers of materials,
5) Mortgage credits recorded in the registry of property (now Registry of Land Titles and Deeds) upon the real estate mortgage,
6) Improvement expenses,
7) Credits annotated in the Registry of Property by virtue of a court order, by attachments or executions and only as to later credits,
Claims of co-heirs for warranty in the p&tition of an immovable among them,
9) Claims of donors of real estate for pecuniary charges or other conditions imposed upon the donor, 10) Credits of insurers for the insurance premium for two years, (Articles 2236-2251, Civil Code).

The muggy weather, the breath-taking scenery and the presence of promiscuous bikini clad denizens may have little to do with the seductive involvement of tropical countries. Offshore is an international term meaning not only out of your country or jurisdiction, but also out the tax reach of your country of residence or citizenship. Going offshore simply means you are taking your money to a foreign jurisdiction. Offshore banking involves banking operations and activities in two or more countries. This section is perhaps the most complex facet of asset protection planning. The need for an expert is indispensable here. This method of asset protection inquires nerves of steel. It is neither for the control freaks nor the faint-hearted. Most top shelf lawyers, portfolio managers, certified public accountants, estate planners, and offshore consultants are familiar with the intricacies of going offshore. There is a prevalent myth that only money launderers and other criminals go offshore for clandestine purposes or to conceal properties. Many legitimate businessmen, professionals and other law abiding citizens open offshore accounts. Putting your money offshore may help discourage litigation and may facilitate settlement at a lesser price.