No One can be Imprisoned for Non-Payment of Debt

Perhaps you’ve heard someone making threats to file criminal cases against debtors who fail to pay. Yet you’ve heard the statement that no one can be imprisoned simply because of a debt. This is a basic principle and we thought we already have a discussion on this topic. We indeed have such discussion but we forgot to post it here. So here goes.

The prohibition against imprisonment for a debt is a basic right enshrined in no less than the Constitution (Article III):

No person shall be imprisoned for debt or non-payment of a poll tax.

The rationale for this prohibition is explained in the case of Lozano vs. Martinez, thus:

. . . Viewed in its historical context, the constitutional prohibition against imprisonment for debt is a safeguard that evolved gradually during the early part of the nineteenth century in the various states of the American Union as a result of the people’s revulsion at the cruel and inhumane practice, sanctioned by common law, which permitted creditors to cause the incarceration of debtors who could not pay their debts. At common law, money judgments arising from actions for the recovery of a debt or for damages from breach of a contract could be enforced against the person or body of the debtor by writ of capias ad satisfaciendum. By means of this writ, a debtor could be seized and imprisoned at the instance of the creditor until he makes the satisfaction awarded. As a consequence of the popular ground swell against such a barbarous practice, provisions forbidding imprisonment for debt came to be generally enshrined in the constitutions of various states of the Union.

This humanitarian provision was transported to our shores by the Americans at the turn of the century and embodied in our organic laws. Later, our fundamental law outlawed not only imprisonment for debt, but also the infamous practice, native to our shore, of throwing people in jail for non-payment of the cedula or poll tax.

In other words, no one could be compelled to pay a debt under pain of criminal sanctions (estafa is a different matter). No one could also substitute the payment of debt through imprisonment or other criminal penalties (subsidiary imprisonment is also another matter).

Let’s examine some laws that were questioned, albeit unsuccessfully, on the ground that these laws violate the constitutional prohibition against non-imprisonment for debt.

Bouncing checks. Certain laws, including Bouncing Checks Law (BP 22), have been questioned as a violation of this right. However, it’s not the non-payment of an obligation which this law punishes. The law isn’t designed to coerce a debtor to pay his debt. The thrust of the law is to prohibit, under pain of penal sanctions, the making of worthless checks and putting them in circulation. Checks have become widely accepted as a medium of payment in trade and commerce, and if the confidence in checks is shaken, the usefulness of checks as currency substitutes would be greatly diminished. When the question was resolved in 1986, it had been reported that the approximate value of bouncing checks per day was close to 200 Million Pesos, thereafter averaging between P50 to P80 Million a day. (Lozano vs. Martinez)

Trust receipts. The same argument was raised against the Trust Receipts Law (PD 115), which is a declaration by the legislative authority that, as a matter of public policy, the failure of a person to turn over the proceeds of the sale of goods covered by a trust receipt or to return said goods if not sold is a public nuisance to be abated by the imposition of penal sanctions. It punishes the dishonesty and abuse of confidence in the handling of money or goods to the prejudice of another. The law does not seek to enforce payment of a loan. (Tiomico vs. CA)

Credit cards. Under the Access Devices Regulation Act of 1998 (RA. 8484), anyone who obtains “money or anything of value through the use of an access device, with intent to defraud or with intent to gain and fleeing thereafter” is criminally liable, punishable with a fine and imprisonment. That law also provides that a cardholder who abandons or surreptitiously leaves the place of employment, business or residence stated in his application or credit card, without informing the credit card company of the place where he could actually be found, if at the time of such abandonment or surreptitious leaving, the outstanding and unpaid balance is past due for at least 90 days and is more than P10,000.00, shall be prima facie presumed to have used his credit card with intent to defraud.” We are still waiting for the test case on this.

22 Comments Added

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  1. pagoda March 24, 2010 |

    Hi. My father is a businessman who contracted debts in his name instead of through the company. Should he pass away before the debts are paid, what happens to the obligation should his estate prove insufficient? Will his debts automatically be assigned to us (his children)? What legal steps/options could be taken? Thank you.

  2. dxtrdaquarius March 30, 2010 |

    Good day!

    I have a walk-in client who used to have GLOBE text PLAN. He was not able to settle his account which reached to the point his plan is cut. He has a total bill of Php 9,000.00 for 4 months + Php 10,000.00 breaching of contract fee.

    Any advise for him?

    Thank you…

  3. tin-tin April 17, 2010 |

    @ pagoda
    read this link and you’ll learn more

  4. tin-tin April 17, 2010 |

    @ dxtrdaquarius
    eto nmn try mo link
    HTH = Hope this help

  5. jc32569 May 12, 2010 |

    Is their a law which stipulates that a permanent instructor in a State Colleges and Universities who have not finished their masteral degree will be downgraded to a temporary or probationary instructor?

  6. HowardChan May 29, 2010 |

    Right. I guess that constitutional provision is one of the most misunderstood provision. But on the other hand, The loan business industry in the country is a loose one. So in reality, a lot of people do not go to court to settle their debt. Most loans are incurred via the “5-6″ system anyway.

    For more discussion on Philippine Jurisprudence, feel free to visit

  7. cervaborn May 30, 2010 |

    Can a person be imprisoned for school debt?

  8. arion778 June 10, 2010 |

    Good day!

    i just want to know what would be the sanction of breaching of contract of lessor vs. lesse?

    a lesse has almost php75,000 of debt to lessor and they transfer to another house without noticing the lessor..


  9. Resident22 June 13, 2010 |

    Good Day!

    My client has been receiving salary by PayPal


    The firm now must pay him $4000 – how he can receive his salary, if the firm has gone bankrupt and his account is now blocked?

  10. inpain June 13, 2010 |

    Hi Sir,

    I am an ofw in uae and since i lost my job i left the country at umuwi dito sa pinas kasi makukulong ka sa uae if 2 monthly di ka nakapay ng due mo. my question is makakasuhan o makukulong po ba ako dito sa pinas since yung debt ko nasa uae? all applications for credit cards and loans doon ay pinapaissue kami ng check, makukulong po ba ako nila d2?please i need your advice.

  11. inpain June 13, 2010 |

    Please give us advice since there are thousands of OFWs from UAE having the same problem and being threatened and harrased by these collecting agencies. We know we have obligation but we dont have a choice since we lost our jobs and now it we have only budget for our families and other basic needs. please help us

  12. bull June 16, 2010 |

    Gusto ko lang po magtanong kung tama ba yung ginagawa ng isang collection agency. Pang huling bayad ko na lang sa credit card dapat nung March 2010 kaya lang di kami naka pagbayad sa dahilan na di pa ako naka pagtrabaho muli mula nun na retrench mula 2009, pero kahit paano nakaka bayad naman kahit nahuhuli sa petsa. Nitong marso hanggang hunyo medyo nahirapan lang talaga, pero naka bayad kami ng limang libo sa kanila at natira yun mahigit isang libo na interest daw yun sa limang libo.

    Ngayon sinabi na namin na magbabayad kami bago matapos itong buwan ng hunyo, pero napakasama ng mga salita na binitawan samin ng collection agency sa telepono, keso sasampahan daw kami ng kaso na breach of contract; ipapapublish daw nila ang pangalan namin at marami pang ma-aanghang salita. Alam namin na nahuli itong pang huling at final na bayad pero sa ulit, nakapagbayad din ng mahigit sa kalahati na hinihingi nila. Tama ba itong ginagawa ng collection agency at kung hindi, saan kami puede dumog para makapag-reklamo.

    Maraming salamat po.

  13. rianna04 June 21, 2010 |


    I owe a certain bank payment for a salary loan. I understand what the blog said about not being imprisoned but what about taking of properties? I saw from the link that you quoted the bill of rights to support this. However, the latter mentions, “… no one can be deprived of life, liberty, property without due process..” or something like that.

    Question is, can they really take properties even if they are willing to go through all the legal proceedings? What can we do, too, as consumers who have somehow taken steps to pay but just cant pay the full amount due to sudden changes in circumstances that affected our capability to pay?

  14. csinternational June 23, 2010 |


    I am a single proprietor and I have a bookkeeper. However, the bookkeeper did not pay all my contributions for specific months so I paid all the discrepancies during the business permit renewal. Can I sue my bookkeeper for anything? The discrepancy is around more or less 30thousand pesos. I would highly appreciate your reply.
    Thank you so much.

  15. mishy_sd July 1, 2010 |

    hello there,

    i just wanted to know the best and legal way for me to get the money that was borrowed to me by an OFW who is based in S. Korea. I have been promised countless times and even sent me a copy of her drivers license, alien reg card and a promise to pay letter but with no good results.

    I know that no one gets imprisoned because of debt, but would it be possible to have that person deported from S. Korea for non-payment of debt?

    (The money borrowed amounted to P250k that’s why it concerns me a lot)

    Your response will truly help.


  16. mariasharapova844 August 6, 2010 |

    I am a single proprietor and I have a bookkeeper.Thank you so much.

    Credit Card Debt

  17. leo317 September 1, 2010 |

    I have an outstanding loan from a Financing Company. This is my second time to avail of their loan services, but due to some unavoidable circumstances I failed to pay all the monthly amortizations via PDCs I have issued to the company. Thus, I was informed that a BP 22 case has been filed against me. I haven’t received any subpoena or warrant from the court since I moved to another residence. Mails concerning my outstanding loan from the financing company were either directed to my mother’s residence or to my husband’s office mostly threats that they would be publishing my picture on the newspaper. Just recently, a letter was delivered at my mom’s residence stating that should I fail to make arrangements with their office within a week upon delivery of the letter, they would be posting my picture in two leading newspapers for four consecutive weeks (a sample for said notice re: pending BP 22 case with my picture has been attached). Is this really possible? And if a case has been filed against me, should I not make arrangements with them in court and not in their office? I really need your advice on this.

    Thank you.

  18. pagoda September 16, 2010 |

    Thank you po for your advice.

    I understood (from the link you provided) that the estate is the only recourse of creditors against debtors that have passed away. If this is insufficient, could the creditors legally have basis to go after the children and demand payment?

  19. wellah September 22, 2010 |

    hi..i am one of the credit card user i voluntarily stop payment them because i observed even though im paying minimum amount my debt to them has increasingly and in multiple times.I decided not to pay them for them to stop my credit card and im willing to pay them to the extend of my only debt without interest.its been a 3moths i ignore all their calls and text.But as of now i may not be able to pay them in full but in installment.May solution po ba sa gusto kung mangyari?sa tingin ko kasi bayad ko na talga ang utang ko sa kanila ang sinisingil na lang nila sa akin is yung mga finance charges at anuual fee nila.

  20. IloveLaw October 9, 2010 |

    ask ko lang po. yung mom ko po kasi may utang na 18k. bale yung 13k po interest lang yung 5k po extra utang nya kaya yung sum 18k. kaso po umalis na yung mom ko pumunta ng qatar.ako po ang naiwan dito 19yrs old at yung dalawa kong lil sis. 17 yung isa yung isa naman 13 palang. then one day nagpakita yung inutangan ng mom ko naniningil, of course wala ako pambayad kaya I told her to contact my mom. I gave her my mom’s no. pero bumalik sya after 2 months papabarangay nya daw ako. I really don’t know what to do. I mean wala kasi dito sa pinas parents ko. what should I do if ever ganun nga agwin nya sakin?. please help

  21. fleet1ng October 17, 2010 |

    Thank you for sharing. Very informative po ang site and helpful sa studies.

  22. jidhell December 8, 2010 |

    i have a loan frm a lending compay for my placemet fee…unfortunately i was repatriated from wrk so i came back in the phils.i talked to the lending company about my situation n they give me restructured loan payment.. sometimes due to insufficient income i was not ble to pay my obligtion but i kip on inforing them…then recently i was surprised when they serves a warrant of arrest to 1 of my co borrower…police harrased her n send heto jail..she was ask for a bail….is this with justice? wala po ba kmi karapatan mgreklamo sa lending kung bt nla gnwa to? r they n position na iharas ng ganito ang issan co borrower? pls help po…salamat

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