Dear IBP Davao,
Naa koy pangutana. Naa ko friend nagpa utang sa akong kauban unya 20% iyang tubo. Tuig na nilabay pero cge ghapon siya hatag interest unya karon dili na makaya hatag tungod kay way trabaho kay na tanggal tungod sa covid. Makulong ba siya if dili siya kabayad sa original na amount na gi utang ug interest if ever mukaso ang nagpa utang?
– Friend of Debtor
Dear Friend of Debtor,
A debtor is obliged to pay his creditor the loan that he had incurred as it falls due. However, no person can be imprisoned merely by reason of non-payment of debt. This guarantee is expressly provided for under Section 20, Article III of the 1987 Philippine Constitution which states: “No person shall be imprisoned for debt or non-payment of poll tax.” This provision is anchored on personal liberty by prohibiting the practice of either sending the debtor to jail or making the debtor personal slaves for failing to pay the debts. But it must be clear that this has something to do with purely civil debts.
To give you a clearer view about this matter, “debt” refers to any civil obligations arising from contracts, express or implied. An obligation to pay arising from extra contractu is considered a private matter between the creditor and the debtor and no criminal action to enforce the former’s right to recover will lie. The remedy of the creditor is a civil action for the recovery of the unpaid debt. Since the action is civil in nature, however, there is no way that the debtor may be imprisoned. The purpose of the action is for the creditor to avail itself of the compulsory processes of the court to force the debtor to pay.
While no person may be imprisoned for nonpayment of debt, an obligation acquired through fraud may be criminally prosecuted. In such case, the fraudulent act of securing the debt, and not his default in paying it, is punishable. The obligation arises from acts ex-delicto and is therefore not considered a debt under the constitutional provision.
Applying the above-mentioned laws, your debtor-friend cannot be imprisoned solely on the basis of his non-payment of debt, including the interest. However, if it can be discovered later on that the obligation was acquired through fraud, then he may be criminally liable.
The above legal opinion is based solely on the appreciation of the facts and problem given and stated above. The opinion may vary when other facts, circumstances, and situations are stated. For more information and for further queries, you may contact the Legal Aid Office of the Integrated Bar of the Philippines Davao City Chapter at ibpdavao@gmail.com.
