Bankruptcy and Unlawful Detainer Procedures
1. Competition Concept in Doctrine
R = Declaration of civil obligations receivable on a non-trader with insufficient equity for multiple creditors.
2. Classes of Competition
Article 684 – Debtor’s contest can be voluntary or required. Voluntary when the debtor declares assets and liabilities. Required when multiple creditors sue with insufficient assets.
3. Subjects in Bankruptcy Proceedings
Insolvent trustee, interim final trustee, auditor, creditors, debtors, and judge.
4. Provisions for Declaring Contest
Article 685 – Judge shall:
I. Notify debtor.
II. Notify creditors via newspapers.
III. Appoint provisional liquidator.
IV. Arrest and secure assets.
V. Ban payments to the bankrupt.
VI. Notify creditors to present claims.
VII. Set date for credit classification.
VIII. Request lawsuits against insolvent.
5. Payment Priority
Payment order: Mortgage and pignoritarios, Preferential loans, Tax Payments, Food, Workers, Cause of death costs, 1st Class, 2nd class, 3rd Class, 4th class.
6. The Trustee
Article 707 – Trustee administers the estate.
7. Trustee’s Duties
Article 710 – Dispose assets with judge’s permission if necessary.
Article 711 – Submit monthly administration state.
8. Correction Board and Payment Priority
Article 691 – Judge-led review of claims and classification.
9. Bankrupt’s Rights
- Attend creditor meetings.
- Object to bankruptcy declaration.
- Object to asset allocation.
- Enter agreements with creditors.
- Object to credits.
- Intervene in credit correction.
- Intervene in food incidents.
10. Creditors’ Rights
- Object to recognized credits.
- Report debtor’s culpable acts.
- Submit credit titles.
- Attend creditor meetings.
- Appoint trustee.
- Make agreements with insolvent.
11. Procedure Stages
- Declaration of insolvency and seizure.
- Recognition, correction, and ranking of claims.
- Auction and disposal.
- Distribution and payment.
12. Unlawful Detainer Demand Basis
Article 634 – Based on non-payment of two or more installments.
13. Unlawful Detainer Periods
Article 635 – 30 days (room), 40 days (commercial/industrial), 90 days (rustic).
14. Tenant Shows Receipts
Article 636 – Proceedings suspended if payment is proven.
15. Tenant Payment During Eviction
Article 637 – Termination of eviction if payment is made.
16. Exceptions to Unlawful Detainer
- Accident or force majeure preventing use.
17. Procedure Suspension
Article 641 – Termination of release if exceptions are valid.
18. Who Can Be Understood Launch?
Article 642 – Family, household, caretaker, janitor, police, or neighbors.