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The Insolvency and Rehabilitation Act of the Philippines is a comprehensive law that governs the insolvency and rehabilitation processes of individuals, businesses, and other entities. The key provisions of the act include:* Definition and scope of the act* Liquidation of assets, including sale of assets, payment of debts, and distribution of remaining assets to creditors* Rehabilitation of debtors, including appointment of a rehabilitation receiver and submission of a rehabilitation plan* Penalties and offenses related to insolvency and rehabilitation, including concealment or destruction of property, false claims, and violations of prohibitions or obligations established by the act* Requirement for appointment of a liquidator or rehabilitation receiver in insolvency and rehabilitation proceedings* Priority list of creditors in insolvency proceedings, with priority given to secured creditors, employees, and tax authorities* Prohibition on the transfer of assets during rehabilitation proceedings without prior approval from the rehabilitation receiver* Requirement for debtors to submit a rehabilitation plan that addresses the underlying causes of insolvency and improves the debtor's financial position.The act also provides protections for small and medium-sized enterprises (SMEs) in insolvency and rehabilitation proceedings. The overall goal of the act is to ensure fairness and efficiency in the treatment of debtors and creditors.
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