Initiation Proceedings Who initiated the proceedings? Debtor or Creditor? If debtor: Voluntary Proceeding If creditor: Involuntary Proceeding Is the petition sufficient in form and substance? Yes Issue a Commencement Order: Rehabilitation Proceedings shall commence. No Effectivity and duration: as long as there is a substantial likelihood that the debtor will be rehabilitated. The Court may, in its own discretion, give the petitioners a reasonable period of time to amend or supplement the petition or submit them if amendment has been made. Initial Hearing Creditors will: 1. To file their notice of claim. TAKE NOTE: A creditor who did not file a notice of claim will not be allowed to participate in the proceedings but will be entitled to receive distributions from Rehabilitation proceedings. 2. (within 20 days from initial hearing) Comment on the rehabilitation plan and submit such to Court and rehabilitation Reciever. Rehabilitation Reciever: (within 40 days from initial hearing) Submit a report of his findings and recommendation. Court: (within 10 days from receipt of report) Must make decision, either: a. Give due course Will direct rehabilitation Reciever to review, revise or recommend action on Rehabilitation plan and submit the same within 90 days OR Refer to Alternative Dispute a. Dismiss May order payment of damages* c. Recommend the hearing to be converted into liquidation proceeding.
