Practice question
After the commencement date, a creditor unilaterally offsets its debt to the debtor against a pre-existing receivable. It claims Section 17 cannot affect setoff because there was no asset seizure. Which is correct?
- Section 17(c) separately addresses post-commencement setoff
- Only physical seizures are covered by every subsection
- Setoff always bypasses rehabilitation
- No setoff can ever be examined by the court
- The creditor becomes owner of every bank account
Legal references
- RA 10142 (FRIA), Sections 4, 7, 9, 17-18, 31-35, 64-70 and 115-121: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
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