Fraudulent insolvency, A314 Revised Penal Code

Fraudulent insolvency – refers to the offense of absconding with property to the prejudice of creditors.

1. Concept

Fraudulent insolvency – refers to the offense of absconding with property to the prejudice of creditors.

a. Legal basis

Article 314. Fraudulent insolvency. - Any person who shall abscond with his property to the prejudice of his creditors, shall suffer the penalty of prision mayor, if he be a merchant and the penalty of prision correccional in its maximum period to prision mayor in its medium period, if he be not a merchant.

(Revised Penal Code)

2. Modes of commission

The following are the modes of committing the offense:

1) To abscond with property to the prejudice of creditors

a. Mode 1: Absconding with properties to the prejudice of creditors

Elements of the offense:

1) That the offender has properties;

2) That the offender has debts owing to creditors; and

2) That the offender absconds with his property to the prejudice of his creditors. (REVISED PENAL CODE, Article 314)

1) Element 1: Properties

That the offenders must have property is an element of the offense as these are what they will be absconding with to the prej...