Covid-19 has caused financial injury and distress to many Filipinos. By early 2021, after the grace periods for loans and other forms of financial assistance granted under Bayanihan 2 will have been exhausted, many more Filipinos will experience the stress and burden of their creditors demanding repayment. Unless a Bayanihan 3 or other legislative relief measure is enacted, defaults on debts are likely be the norm in 2021.
Some Filipinos may find some relief from their debts under Republic Act 10142, or the “Financial Rehabilitation and Insolvency Act (FRIA) of 2010.” For individuals, the remedies under the FRIA apply only to “residents and citizens of the Philippines” who are insolvent.