1. Determine the meaning of rehabilitation and insolvency or any words related to it.

• Insolvency refers to the inability to pay one’s debts as they fall due.

• Rehabilitation, on the other hand, pertains to the process of recovery and reorganization, and is
especially applicable to a juridical entity, such as a corporation.

2. An insolvent entity may be an individual person or a corporation:

a. Determine what are the requirements needed for a creditor/corporation itself to file a petition to
initiate voluntary proceedings for court-supervised rehabilitation (ICRGOSIRND) GRRIINDCOS

(a) Identification of the debtor, its principal activities and its addresses;

(b) Statement of the fact of and the cause of the debtor's insolvency or inability to pay its
obligations as they become due;

(c) The specific relief sought pursuant to this Act;

(d) The grounds upon which the petition is based;

(e) Other information that may be required under this Act depending on the form of relief
requested;

(f) Schedule of the debtor's debts and liabilities including a list of creditors with their addresses,
amounts of claims and collaterals, or securities, if any;

(g) An inventory of all its assets including receivables and claims against third parties;

(h) A Rehabilitation Plan;

(i) The names of at least three (3) nominees to the position of rehabilitation receiver; and

(j) Other documents required to be filed with the petition pursuant to this Act and the rules of
procedure as may be promulgated by the Supreme Court.

b. Determine what are the requirements needed for a group of credits to file a petition to initiate
involuntary liquidation (IRRCNOD)

(a) identification of the debtor its principal activities and its address;

(b) the circumstances sufficient to support a petition to initiate involuntary rehabilitation

proceedings under Section 13 of this Act;

(c) the specific relief sought under this Act;

(d) a Rehabilitation Plan;

(e) the names of at least three (3) nominees to the position of rehabilitation receiver;
 (f) other information that may be required under this Act depending on the form of relief
requested; and

(g) other documents required to be filed with the petition pursuant to this Act and the rules of
procedure as may be promulgated by the Supreme Court

3. Determine the Meaning of Stay Order, Receiver, and Rehabilitation Plan

A. Rehabilitation Plan

Shall refer to a plan by which the financial well-being and viability of an insolvent debtor can be
restored using various means including, but not limited to, debt forgiveness, debt rescheduling,
reorganization or quasi-reorganization, dacion en pago, debt-equity conversion and sale of the
business (or parts of it) as a going concern, or setting-up of new business entity as prescribed in
Section 62 hereof, or other similar arrangements as may be approved by the court or creditors.

B. Stay Order

Court order that suspends a judicial proceeding (or a judgment resulting from it) in part or in
full.

C. Rehabilitation Receiver

Shall refer to the person or persons, natural or juridical, appointed as such by the court pursuant
to this Act and which shall be entrusted with such powers and duties as set forth herein. A
receiver is a person appointed by a bankruptcy court or secured creditor to run a company for a
short period of time. A receiver's main function is to liquidate all available assets and ensure as
much debt as possible is paid back to creditors.