And since it has been established there is NO DEBTORS prison, obviously something else must be going on!
There are either other infractions of the law, as mentioned, like fraud info. on a loan application. Or on the other side of the equation, bad police work.
Now that does happen in PH. Case in point, Ted Failon's house keeers were arrested and put in jail after his wife killed herself. Can you imagine, this was the worst case of "bad" police work I have ever seen. The cop in charge that initiated the arrest was later fired!
That is the one thing I would be worried about more than "debtor's prison" in PH!! Any involvement with law enforcement can go really bad, really quick and you don't have the same protections we have in the US.