get out of debt

Court Cases that May Need RTC Clearance in the Philippines

So how do you really get out of a dilemma of suddenly knowing that you have a court case filed against you by a bank or a financing or lending company in the Philippines? I bet it is very hard to accept that just like that, sometimes without knowing at all, you suddenly find out upon applying for a loan in a banking institution or a financing company that you have a court case. Some of these most common examples of court cases may include (based from my own experience as a professional and qualified loan consultant) replevin, sum of money, cancelled card issues, BP-22 or bounced check case.

replevin case court clearance

What to Do When Filed a Court Case wihtout Your Knowledge

Any of these cases mentioned above, if you are not knowledgeable about it may be filed against you, without notifying you at all by the other party. Sometimes we overlook loan contracts, credit card terms, checking account conditions and such until there comes a point wherein our finances have gone wrong somewhere along the way and without even intentionally committing a bridge of contract or policy and terms violation, we were laid on to being filed against these wrongdoings a court case. As mentioned above, there may be times that even if you’ve had good terms with your bank being a business owner or good credit holder you thought that everything else will go fine but no until you find out it’s not those customer service people from the teller to the marketing officers who will file the case against you but the legal department of the institution. That is where something else has gone wrong. Most of these legal departments just send automated warning emails trying to notify you that your finances are not doing well and that the bank or lending company or financing company will be filing for a court case.

What Went Wrong and Why Was I Not Notified I Have A Court Case Filed Against Me?


Since many of these emails were just handled by outsourced couriers, chances are, there may be times the letter of warning will not get to your very hands therefore you won’t know about it and until you apply for financing say for a car or house and lot loan or file or apply for a loan in the Philippines, will you find out that something has gone wrong with your credit status. You are already in a case that we call here in the Philippines as bad credit. To get out of this dilemma, you will have to settle things first with the bank or lending or financing company and in many cases, although the wrongdoing has been settled, the other party has no case at all to notify you that you have to settle a court case filed against you in aid of avoiding conflicts of interest with the bosses of the financing institution. There may be in most cases a no notification at all regarding your case and how to handle and solve removing your bad credit status through securing a court case clearance.

bounced cheque sample

Step by Step Procedures of Getting or Securing Court Case Clearance

  1. Settle the arears, payments, credit, sum of money, bounced check, or any cause of the bad credit case with the financing company, lending firm, bank institution or anybody on the other party who filed the case against you.
  2. In many cases, if it is with a bank, you will have to contact the legal department with regards to the case. If there is still a chance to settle or get an amicable settlement option, then by all means try to settle it with the legal department.
  3. If the arears and payment problems have been settled, go get a certificate of full payment from the bank or other party and try to arrange with their legal department to issue a clearance of some sort and if possible, have them file a case resolved with the RTC where the case against you was filed. Remember that bad credit status is forever unless you have it revoked or resolved.
  4. After getting a clearance for payment or for settlement agreement or amicable settlement, wait for or get outright a copy of clearance and if the legal department wont arrange clearing it with the RTC where the case against you was filed, go get your clearance copy and go straight to the RTC branch where your case is and settle it by presenting your full payment or clearance from the demanding party.
  5. RTC where your case is filed will issue your a court case clearance. Go get a copy of it.