RULE 86. CLAIMS AGAINST THE ESTATE SEC 7.

Alternative remedies of a mortgagee in case of

death of mortgagor:

 waive the mortgage and claim the entire debt

SEC 1. Notice to the creditors to be issued by the court.
SEC 2. Statute of non-claims: creditors must present their
claims for examination and allowance within the period
prescribed by law: not more than 12 months less than six
months after date of first publication of notice.
from the estate as a money claim
 foreclose the mortgage judicially and prove
deficiency as ordinary claim
 foreclose the mortgage extrajudicially without the
right to file a claim for deficiency

Purpose: expeditious settlement of estate, so that residue
may be delivered to those entitled thereto.
Exception: the Rules of Court allows a creditor to file a
claim beyond the period designated, provided:
SEC 8. Claim of executor or administrator against the
estate he represents: give notice in writing to the court,
and the latter shall appoint a special administrator who
shall have the power of executor or administrator in the
adjustment of that particular claim.

 no order of distribution had been entered

 for good cause shown and on equitable terms
 claim must be filed within a time not exceeding 1 SEC 9.
month

SEC 10. Within 15 days after service of the claim to the

SEC 3. Notice to creditors to be published by the EA 3
successive weeks in a newspaper of general circulation
and posted for 3 weeks in four public places in the
province and 2 public places in the municipality where the
decedent last resided.
SEC 5. Claims which must be filed with the probate court
within the period in SEC 2, and otherwise are barred
forever:
administrator, he shall answer denying or admitting the
claim. He shall allege any offset in the claim, and failure to
do so bars the claim forever.
SEC 11. Admitted claims may be approved by the clerk
without hearing or with hearing.
SEC 12. Contested claims shall be tried.

 claims for money against decedent arising from

contract, express or implied, whether due, not
SEC 13. Judgment of approval or disapproval of a claim is
due or contingent
appealable as in ordinary cases; favorable judgment does
 claims for funeral expenses and expenses for the
not give the claimant priority of payment.
last sickness of the decedent
 judgment for money against the decedent

SEC 6. Solidary obligation of decedent: claim may be filed

as if he was the only debtor, but the estate may recover
contribution from the co-debtor.

If joint obligation, only that which pertains to him may be

filed.
RULE 87: ACTIONS BY AND AGAINST EXECUTORS SEC 8. Embezzlement or alienation of property of the
AND ADMINISTRATORS deceased prior to issuance of letters testamentary or
administration makes him liable to double the value fo the
property sold.

SEC 1. Actions which may not be brought against the EA:

claim of recovery of money or debt or interest thereon.
SEC 9. The EA may prosecute an action for the recovery of
Actions which may be brought against the EA: properties alienated or sold by the deceased, provided:

 recovery of real or personal property or an  there is deficiency of assets in the hands of EA to

interest therein
 enforcement of a lien on R or P property
 actions to recover damages for injury to person
or property, real or personal
SEC 2. The EA may bring or defend actions which survive
the death of the deceased, mentioned in Sec 1.
satisfy debts of the estate
 deceased in his lifetime had conveyed properties
or a right or interest thereon with intent to
defraud creditors or avoid any debt or duty or so
conveyed the same in a manner void as against
his creditors
 subject matter of the conveyance would be liable
to attachment by the creditors if he was alive

SEC 3. An heir may not sue for the recovery of title or SEC 10. The creditor may file an action based on the
possession of property or damages relating thereto preceding section provided:
UNLESS there had been an order assigning such property
 EA is shown to have no desire to file the action
to such heir, or until the time allowed for paying debts
 leave is granted by the court for the creditor to
had expired.
file the action
 bond is filed by the creditor
 action of the creditor is in the name of the EA
SEC 4. EA may compound with debtor of deceased for a
debt due; may discharge such debt on receiving just
dividend of the estate of the debtor.

SEC 5. Mortgage may be foreclosed by the EA.

SEC 6. Upon complaint before the court of the EA, heir or

any person interested in the estate of concealment,
embezzlement or conveying away of any property of the
deceased, the same person may be examined by the court
and failure to comply makes him in contempt, and may be
committed to prison until he submits to the order of the
court.

SEC 7.
SEC 88. PAYMENT OF THE DEBTS OF THE ESTATE SEC 9. Estate of insolvent non-residents: properties in PH
should be disposed of such that creditors in PH and
outside PH are entitled to equal shares in proportion to
SEC 1. Debts to be paid in full if estate is sufficient. amount of claim.

SEC 2. If the testator provided by will that part of the
estate to be utilized for payment of debts, it should be
followed; if insufficient, other parts of the estate not
disposed of by will shall be appropriated for payment.
SEC 10. Claims proved in foreign court, if the EA is given
the chance to contest the same, shall be accepted as an
ordinary claim in our country, but shall only be given
equal footing with PH creditors if PH creditors are placed
also in equal footing with creditors of the country where
the judgment is rendered.

SEC 3. Personal property not disposed of by will shall be

chargeable to pay debts.
SEC 11. Court orders the order of payment and
EXC: when insufficient or sale would redound to detriment distribution of assets.
of the participants of the estate, real properties not
disposed of by will may be sold, mortgaged or otherwise
encumbered. SEC 12. In case of appeal, payment of the affected claims
may be suspended but others shall be unaffected.

SEC 4. Part of the estate sufficient to pay contingent

claims must be retained, or if estate is insufficient, its pro SEC 15. The time for the payment of debts shall be 1 year
rata share in the total debts. from the grant of the letters testamentary or
administration. EXC: EA may apply for extension, which
must not exceed 6 months per extension nor should the
SEC 5. Contingent claims: whole period exceed 2 years.

If presented within 2 years from period given to other

creditors to claim, it shall be paid by the portion of the
estate retained for the same. SEC 16. Successor of dead executor may extend the time
allowed not exceeding 6 months per extension, nor
If beyond 2 years, the assets so retained may be exceeding 2 years and 6 months total.
distributed to the persons entitled to the same, but the
assets so distributed may be applied to the payment of
the contingent claim once it becomes due.

SEC 6. If heirs had taken possession of properties prior to

settlement of debts and expenses, the shall be liable to
contribute to the payment of such debts and expenses.

SEC 7. Insolvent estate, provisions of the Civil Code on

concurrence and preference of credit shall be observed.

SEC 8. If estate is insufficient, each creditor within a class

shall be paid dividend in proportion to his claim.
SEC 89. SALES, MORTGAGES, AND OTHER SEC 90. DISTRIBUTION AND PARTITION
ENCUMBRANCES OF PROPERTY OF DECEDENT

SEC 1. After the debts, funeral charges, expenses of

SEC 1. The personalty of the deceased may be ordered administration, allowances to the widow, inheritance tax,
sold if it appears to be sufficient to pay debts, expenses and all burdens of the estate had been paid, the court
of administration, legacies or preservation of property. may:

 assign the residue of the estate to persons

entitled to the same
SEC 2. When court may order sale, mortgage or  naming them and the proportions to which they
encumbrance of realty to pay debts and legacies though are entitled
personalty had not been exhausted:
Such person may demand the same from EA.
 personal estate not sufficient
 sale of personalty may injure the business or Controversies as to lawful heirs or distributive shares shall
other interests of persons interested in the estate be heard and decided.

No distribution is allowed until payment of all obligations

of the estate. EXC: distributes filed a bond.
SEC 3. SEC 2 may be halted by filing of a bond by a person
interested in the estate, conditioned to pay all debts and
expenses, for security of creditors and the EA.
SEC 2. Questions as to advancements may also be
decided.

SEC 4. The court may order the sale of estate (real or

personal) if beneficial to the heirs and all interested
SEC 3.
persons to the estate, although not necessary to pay
debts and expenses. EXC: if inconsistent with provisions of
the will.

SEC 5. Properties not necessary to pay the debt and

expenses in the PH may be sold, mortgaged or
encumbered for payment of the decedent’s debts in
probate proceedings in another country.