See - Is approval of the insolvency court needed to foreclose a mortgage? | INQUIRER.net
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The Supreme Court held that several provisions of the old Insolvency Act (Act No. 1956) “reveal the necessity for leave of the insolvency court.” In the words of the Court, “With the declaration of insolvency of the debtor, insolvency courts ’obtain full and complete jurisdiction over all property of the insolvent and of all claims by and against [it.]’ It follows that the insolvency court has exclusive jurisdiction to deal with the property of the insolvent. Consequently, after the mortgagor-debtor has been declared insolvent and the insolvency court has acquired control of his estate, a mortgagee may not, without the permission of the insolvency court, institute proceedings to enforce its lien. In so doing, it would interfere with the insolvency court’s possession and orderly administration of the insolvent’s properties.”
(Metropolitan Bank and Trust Company vs. S.F. Naguiat Enterprises, Inc., G.R. No. 178407, March 18, 2015)
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