Q What are the acts of debtor or grounds which will prevent discharge A No

Q what are the acts of debtor or grounds which will

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Q: What are the acts of debtor or grounds which will prevent discharge? A: No discharge shall be granted, or if granted, shall be valid, to the following cases: 1. False swearing; 2. Concealment of any part of his estate or effects; 3. Fraud or willful neglect in the care of his property or in the delivery thereof to the assignee; 4. Procuring his properties to be attached or seized on execution within 1 month before the commencement of insolvency proceedings; 5. Destruction, mutilation, alteration or falsification of his books, documents, and papers; 6. Giving fraudulent preference to a creditor; 7. Non disclosure of the assignee of a proven false or fictitious debt within 1 month after acquiring knowledge; 8. Being a merchant, failure to keep proper books or accounts; 9. Influencing the action of any creditor, at any state of the proceedings, by pecuniary consideration; 10. Effecting any transfer, conveyance or mortgage in contemplation of insolvency; 11. Conviction of any misdemeanor under the Insolvency Law: 12. In case of voluntary insolvency, he has received the benefit of insolvency within 6 years next preceding his application for discharge; and 13. If insolvency proceeding in which he could have applied are pending by or against him in the RTC of any other province or city. (Sec. 65) Q: What are the effects of discharge? A: 1. It releases the debtor from all claims, debts, liabilities and demand set forth in the schedule or which were or might have been proved against his estate in insolvency. (Sec. 69). Hence, non provable debts are not affected whether or not they were properly scheduled; 2. It operates as a discharge of the insolvent and future acquisitions, but pemits mortgagees and other lien creditors to have their satisfaction out of the mortgage or subject of the lien; 3. It is a special defense which may be pledged and be a complete bar to all suits brought on any such debts, claims, liabilities or demands. (Ibid.) 4. It does not operate to release any person liable for the same debt, for or with the debtor, either as partner, joint contractor, indorser, surety or otherwise; (Sec. 68) 5. The certificate of discharge is prima facie evidence of the fact of release, and the regularity of such discharge. Note: Where a debtor is judicially declared insolvent, the remedy of the guarantor or surety would be to file a contingent claim in the insolvency proceeding, if his rights as such guarantor or sureties are not to be barred by the subsequent discharge of the insolvent debtor from all his liabilities. Q: What are the debts and obligations not affected by discharge of insolvent? A: 1. Taxes or assessments due the Government, whether national or local; 2. Any debt created by the fraud or embezzlement of the debtor; 3. Any debt created by the defalcation of the debtor as a public officer or while acting in a fiduciary capacity; 4. Debt of any person liable for the same debt, for or with the insolvent debtor, either as partner, joint contractor, inorser, surety or otherwise; (Sec. 68) 5. Debts of a corporation (Sec. 52); 6. Claim for support; 7. Discharged
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