Practice question
A debtor proposes paying a purely personal luxury expense while suspension proceedings are pending. It is neither necessary nor a legitimate expense of the business or industry. What does Section 95(f) require?
- Every personal payment is automatically authorized by filing the petition.
- The commissioner must personally fund the purchase.
- The payment becomes secured simply because the debtor wants it.
- The order prohibits that payment outside the specified necessary or legitimate business expenses.
- The suspension automatically cancels all expense controls.
Legal references
- RA 10142, Sections 95 and 99-102, suspension of payments: https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html
- Supreme Court A.M. 15-04-06-SC, April 21, 2015, FLSP Rules, Rule 3(A), official PHILJA publication: https://philja.judiciary.gov.ph/files/bulletin/Bul66.pdf
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