06 Activity 2 SITUATION ANALYSIS Read and analyze the following situations. Encircle the letter of the correct answer. 1. Juan has total assets worth P1,000,000 and total liabilities amounting to P900,000. However, most of his assets are in the form of fixed assets that cannot be easily sold while majority of his liabilities will mature within one (1) month. What legal remedy under Financial Rehabilitation and Insolvency Act (FRIA) shall be availed by Juan? a. b. c. d. Petition for declaration of suspension of payments Petition for voluntary liquidation of insolvent individual debtor Petition for rehabilitation Petition for involuntary liquidation 2. Antonio has total assets worth P2,000,000 and total liabilities of P3,500,000. What legal remedy under FRIA shall be availed by Antonio to be discharged from his liabilities? a. b. c. d. Petition for declaration of suspension of payments Petition for voluntary liquidation of insolvent individual debtor Petition for rehabilitation Petition for involuntary liquidation 3. Manuel has total assets of P200,000 and total liabilities amounting to P500,000. If you are a creditor of Manuel, what legal remedy will you file under FRIA if he is exhibiting acts of insolvency? a. b. c. d. Petition for declaration of suspension of payments Petition for voluntary liquidation of insolvent individual debtor Petition for rehabilitation Petition for involuntary liquidation 4. Art filed a petition for suspension of payments in court. During the pendency of the proceedings, a writ of execution was issued by another court in favor of Cathy, an unsecured creditor, against Art. Marie, a creditor-mortgagee, also initiated the foreclosure of the mortgaged property of Art. Which of the following statements relative to Suspension of Payments under the FRIA is correct? a. Both the execution of favor of Cathy and the foreclosure on the mortgage in favor of Marie shall be suspended. b. Both the execution in favor of Cathy and the foreclosure on the mortgage in favor of Marie shall proceed. c. The execution in favor of Cathy shall proceed, but the foreclosure on the mortgage in favor of Marie shall be suspended. d. The execution in favor of Cathy shall be suspended but the foreclosure on the mortgage in favor of Marie shall proceed. This study source was downloaded by 100000883387398 from CourseHero.com on 04-04-2024 07:13:08 GMT -05:00 https://www.coursehero.com/file/126251009/situation-analysis-2pdf/ 5. In the involuntary liquidation under FRIA, what is the aggregate amount of claims that the initiating creditors must have against the debtor? a. At least P500,000 or at least 50% of the subscribed capital stock or partners’ contributions, whichever is lower b. At least P500,000 or at least 50% of the subscribed capital stock or partners’ contributions, whichever is higher c. At least P1,000,000 or at least 25% of the subscribed capital stock or partners’ contributions, whichever is lower d. At least P1,000,000 or at least 25% of the subscribed capital stock or partners’ contributions, whichever is higher This study source was downloaded by 100000883387398 from CourseHero.com on 04-04-2024 07:13:08 GMT -05:00 https://www.coursehero.com/file/126251009/situation-analysis-2pdf/ Powered by TCPDF (www.tcpdf.org)
