DIGEST, SY 2016-2017 Atty.

Boomsri Rodolfo
Special Procedings

V. CLAIMS AGAINST ESTATE o otherwise they are barred forever,

RULE 86: CLAIMS AGAINST ESTATE o EXCEPT that they may be set forth as counterclaims in any
SEC. 1. Notice to creditors to be issued by court. — action that the executor or administrator may bring against the
 Immediately after granting letters testamentary or of administration, claimants.
the court shall issue a notice requiring all persons having money  Where an executor or administrator commences an action, or
claims against the decedent to file them in the office of the clerk of prosecutes an action already commenced by the deceased in his
said court. lifetime, the debtor may set forth by answer the claims he has
against the decedent, instead of presenting them independently to
SEC. 2. Time within which claims shall be filed. — the court as herein provided, and mutual claims may be set off
 In the notice provided in the preceding section, the court shall estate against each other in such action; and
the time for the filing of claims against the estate, which shall NOT be  if final judgment is rendered in favor of the defendant, the amount so
more than twelve (12) not less than six (6) months after the date determined shall be considered the true balance against the estate,
of the first publication of the notice. as though the claim had been presented directly before the court in
 HOWEVER, at any time before an order of distribution is entered, on the administration proceedings.
application of a creditor who has failed to file his claim within the  Claims not yet due, or contingent, may be approved at their present
previously limited, the court may, for cause shown and on such terms value.
as are equitable, allow such claim to be filed within a time NOT
exceeding one (1) month. SEC. 6. Solidary obligation of decedent. —
 Where the obligation of the decedent is solidary with another debtor,
SEC. 3. Publication of notice to creditors. — the claim shall be filed against the decedent as if he were the only
 Every executor or administrator shall, immediately after the notice to debtor, without prejudice to the right of the estate to recover
creditors is issued, cause the same to be published three (3) weeks contribution from the debtor.
successively in a newspaper of general circulation in the  In a joint obligation of the decedent, the claim shall be confined to the
province, and to be posted for the same period in four public places portion belonging to him.
in the province and in two public places in the municipality where
the decedent last resided. SEC. 7. Mortgage debt due from estate. —
 A creditor holding a claim against the deceased secured by mortgage
SEC. 4. Filing of copy of printed notice. — or other colateral security, may abandon the security and
 Within ten (10) days after the notice has been published and prosecute his claim in the manner provided in this rule, and
posted in accordance with the preceding section, the executor or share in the general distribution of the assets of the estate; or
administrator shall file or cause to be filed in the court a printed o he may foreclose his mortgage or realize upon his security,
copy of the notice accompanied with an affidavit setting forth the by action in court, making the executor or administrator a party
dates of the first and last publication thereof and the name of the defendant, and if there is a judgment for a deficiency, after the
newspaper in which the same is printed. sale of the mortgaged premises, or the property pledged, in the
foreclosure or other proceeding to realize upon the security, he
SEC. 5. Claims which must be filed under the notice. If not may claim his deficiency judgment in the manner provided in the
filed, barred; exceptions. — preceding section or he may rely upon his mortgage or other
 All claims for money against the decent, arising from contract, security alone, and foreclosure the same at any time within the
express or implied, whether the same be due, not due, or contingent, period of the statute of limitations, and in that event he shall not
all claims for funeral expenses and expense for the last sickness of be admitted as a creditor, and shall receive no share in the
the decedent, and judgment for money against the decent, must be distribution of the other assets of estate;
filed within the time limited in the notice; o BUT nothing herein contained shall prohibit the executor or

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 1
DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

administrator from redeeming the property mortgaged or  Within fifteen (15) days after service of a copy of the claim on the
pledged, by paying the debt for which it is held as security, under executor or administrator, he shall file his answer admitting or
the direction of the court, if the court shall adjudge it to be for the denying the claim specifically, and setting forth the admission or
best interest of the estate that such redemption shall be made. denial.
 If he has no knowledge sufficient to enable him to admit or deny
SEC. 8. Claim of executor or administrator against an estate. — specifically, he shall state such want of knowledge.
 If the executor or administrator has a claim against the estate he  The executor or administrator in his answer shall allege in offset any
represents, he shall give notice thereof, in writing, to the court, and claim which the decedent before death had against the claimant,
the court shall appoint a special administrator, who shall, in the and his failure to do so shall bar the claim forever.
adjustment of such claim, have the same power and be subject to the  A copy of the answer shall be served by the executor or administrator
same liability as the general administrator or executor in the on the claimant.
settlement of other claims.  The court in its discretion may extend the time for filing such answer.
 The court may order the executor or administrator to pay to the
special administrator necessary funds to defend such claim. SEC. 11. Disposition of admitted claim. —
 Any claim admitted entirely by the executor or administrator shall
SEC. 9. How to file a claim. Contents thereof. Notice to executor or immediately be submitted by the clerk to the court who may
administrator. — approve the same without hearing;
 A claim may be filed by delivering the same with the necessary o BUT the court, in its discretion, before approving the claim, may
vouchers to the clerk of court and by serving a copy thereof on the order that known heirs, legatees, or devisees be notified and
executor or administrator. heard.
 If the claim be founded on a bond, bill, note, or any other instrument,  If upon hearing, an heir, legatees, or devisee opposes the claim, the
the original need NOT be filed, but a copy thereof with all court may, in its discretion, allow him fifteen (15) days to file an
indorsements shall be attached to the claim and filed therewith. answer to the claim in the manner prescribed in the preceding
 ON DEMAND, however, of the executor or administrator, or by order section.
of the court or judge, the original shall be exhibited, UNLESS it be
list or destroyed, in which case the claimant must accompany his SEC. 12. Trial of contested claim. —
claim with affidavit or affidavits containing a copy or particular  Upon the filing of an answer to a claim, or upon the expiration of the
description of the instrument and stating its loss or destruction. time for such filing, the clerk of court shall set the claim for trial with
 When the claim is due, it must be supported by affidavit stating the notice to both parties.
amount justly due, that no payments have been made thereon  The court may refer the claim to a commissioner.
which are not credited, and that there are no offsets to the same,
to the knowledge of the affiant. SEC. 13. Judgment appealable. —
 If the claim is not due, or is contingent, when filed, it must also be  The judgment of the court approving or disapproving a claim, shall be
supported by affidavits stating the particulars thereof. filed with the record of the administration proceedings with notice to
 When the affidavit is made by a person other than the claimant, he both parties, and is appealable as in ordinary cases.
must set forth therein the reason why it is not made by the  A judgment against the executor or administrator shall be that he pay,
claimant. in due course of administration, the amount ascertained to be due,
 The claim once filed shall be attached to the record of the case in and it shall not create any lien upon the property of the estate, or give
which the letters testamentary or of administration were issued, to the judgment creditor any priority of payment.
although the court, in its discretion, and as a matter of convenience,
may order all the claims to be collected in a separate folder.
SEC. 10. Answer of executor or administrator. Offsets — SEC. 14. Costs. —

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 2
DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

 When the executor or administrator, in his answer, admits and offers against each other in such action; and
to pay part of a claim, and the claimant refuses to accept the amount  if final judgment is rendered in favor of the defendant, the amount so
offered in satisfaction of his claim, if he fails to obtain a more determined shall be considered the true balance against the estate,
favorable judgment, he cannot recover costs, BUT must pay to the as though the claim had been presented directly before the court in
executor or administrator costs from the time of the offer. the administration proceedings.
 Where an action commenced against the deceased for money has  Claims not yet due, or contingent, may be approved at their present
been discontinued and the claim embraced therein presented as in value.
this rule provided, the prevailing party shall be allowed the costs of
his action up to the time of its discontinuance. SEC. 7. Mortgage debt due from estate. —
 A creditor holding a claim against the deceased secured by mortgage
or other colateral security, may abandon the security and
prosecute his claim in the manner provided in this rule, and
share in the general distribution of the assets of the estate; or
A. STATUTE OF NON-CLAIM
 he may foreclose his mortgage or realize upon his security, by
RULE 86
action in court, making the executor or administrator a party
SEC. 2. Time within which claims shall be filed. —
defendant, and if there is a judgment for a deficiency, after the sale of
 In the notice provided in the preceding section, the court shall estate the mortgaged premises, or the property pledged, in the foreclosure
the time for the filing of claims against the estate, which shall NOT be or other proceeding to realize upon the security, he may claim his
more than twelve (12) not less than six (6) months after the date deficiency judgment in the manner provided in the preceding section
of the first publication of the notice. or he may rely upon his mortgage or other security alone, and
 HOWEVER, at any time before an order of distribution is entered, on foreclosure the same at any time within the period of the statute of
application of a creditor who has failed to file his claim within the limitations, and in that event he shall not be admitted as a creditor,
previously limited, the court may, for cause shown and on such terms and shall receive no share in the distribution of the other assets of
as are equitable, allow such claim to be filed within a time NOT estate;
exceeding one (1) month. o BUT nothing herein contained shall prohibit the executor or
administrator from redeeming the property mortgaged or
SEC. 5. Claims which must be filed under the notice. If not pledged, by paying the debt for which it is held as security, under
filed, barred; exceptions. — the direction of the court, if the court shall adjudge it to be for the
 All claims for money against the decent, arising from contract, best interest of the estate that such redemption shall be made.
express or implied, whether the same be due, not due, or contingent,
all claims for funeral expenses and expense for the last sickness of RULE 87
the decedent, and judgment for money against the decent, must be SEC. 1. Actions which may and which may not be brought against
filed within the time limited in the notice; executor or administrator. —
o otherwise they are barred forever,  NO action upon a claim for the recovery of money or debt or interest
o EXCEPT that they may be set forth as counterclaims in any thereon shall be commenced against the executor or administrator;
action that the executor or administrator may bring against the  BUT to recover real or personal property, or an interest therein, from
claimants. the estate, or to enforce a lien thereon, and actions to recover
 Where an executor or administrator commences an action, or damages for an injury to person or property, real or personal, may be
prosecutes an action already commenced by the deceased in his commenced against him.
lifetime, the debtor may set forth by answer the claims he has
against the decedent, instead of presenting them independently to RULE 90
the court as herein provided, and mutual claims may be set off SEC. 1. When order for distribution of reside made. —

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 3
DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

 When the debts, funeral charges, and expenses of administration, the property sufficient and available for food, shelter and basic
allowance to the widow, and inheritance tax, if any, chargeable to the necessities for himself and his family.
estate in accordance with law, have been paid, the court, ON THE  Such authority shall include an exemption from payment of docket
APPLICATION OF THE EXECUTOR OR ADMINISTRATOR, or OF and other lawful fees, and of transcripts of stenographic notes
A PERSON INTERESTED IN THE ESTATE, and after hearing upon which the court may order to be furnished him.
notice, shall assign the residue of the estate to the persons o The amount of the docket and other lawful fees which the
entitled to the same, naming them and the proportions, or parts, to indigent was exempted from paying shall be a lien on any
which each is entitled, and such persons may demand and recover judgment rendered in the case favorable to the indigent,
their respective shares from the executor or administrator, or any UNLESS the court otherwise provides.
other person having the same in his possession.  Any adverse party may contest the grant of such authority at any time
 If there is a controversy before the court as to who are the lawful heirs before judgment is rendered by the trial court.
of the deceased person or as the distributive shares to which each o If the court should determine after hearing that the party declared
person is entitled under the law, the controversy shall be heard and as an indigent is in fact a person with sufficient income or
decided as in ordinary cases. property, the proper docket and other lawful fees shall be
 NO distribution shall be allowed until the payment of the obligations assessed and collected by the clerk of court.
above mentioned has been made or provided for, o If payment is not made within the time fixed by the court,
o UNLESS the distributees, or any of them, give a bond, in a sum execution shall issue or the payment thereof, without prejudice to
to be fixed by the court, conditioned for the payment of said such other sanctions as the court may impose. (22a)
obligations within such time as the court directs.

RULE 39
B. CLAIMS THAT SURVIVES DEATH SEC. 7. Execution in case of death of party. —
RULE 3  In case of the death of a party, execution may issue or be enforced in
SEC. 17. Death or separation of a party who is a public officer. — the following manner:
 When a public officer is a party in an action in his official capacity and (a) In case of the death of the judgment obligee, upon the
during its pendency dies, resigns, or otherwise ceases to hold office, application of his executor or administrator, or successor in
the action may be continued and maintained by or against his interest;
successor if, within thirty (30) days after the successor takes (b) In case of the death of the judgment obligor, against his
office or such time as may be granted by the court, it is executor or administrator or successor in interest, if the judgment
satisfactorily shown to the court by any party that there is a be for the recovery of real or personal property, or the
substantial need for continuing or maintaining it and that the enforcement of a lien thereon;
successor adopts or continues or threatens to adopt or continue (c) In case of the death of the judgment obligor, after execution is
to adopt or continue the action of his predecessor. actually levied upon any of his property, the same may be sold for
 Before a substitution is made, the party or officer to be affected, the satisfaction of the judgment obligation, and the officer making
UNLESS expressly assenting thereto, shall be given reasonable the sale shall account to the corresponding executor or
notice of the application therefor and accorded an opportunity to administrator for any surplus in his hands. (7a)
be heard. (18a)

SEC. 21. Indigent party. — C. PROCEDURE

 A party may be authorized to litigate his action, claim or defense as a. Notice/ Publication/ Posting of Filing Claims
an indigent if the court, UPON AN EX PARTE APPLICATION and RULE 86: CLAIMS AGAINST ESTATE
HEARING, is satisfied that the party is one who has no money or SEC. 1. Notice to creditors to be issued by court. —

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 4
DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

 Immediately after granting letters testamentary or of administration,  ON DEMAND, however, of the executor or administrator, or by order
the court shall issue a notice requiring all persons having money of the court or judge, the original shall be exhibited,
claims against the decedent to file them in the office of the clerk of o UNLESS it be list or destroyed, in which case the claimant must
said court. accompany his claim with affidavit or affidavits containing a copy
or particular description of the instrument and stating its loss or
SEC. 2. Time within which claims shall be filed. — destruction.
 In the notice provided in the preceding section, the court shall estate  When the claim is due, it must be supported by affidavit stating the
the time for the filing of claims against the estate, which shall NOT be amount justly due, that no payments have been made thereon
more than twelve (12) not less than six (6) months after the date which are not credited, and that there are no offsets to the same,
of the first publication of the notice. to the knowledge of the affiant.
 HOWEVER, at any time before an order of distribution is entered, on  If the claim is not due, or is contingent, when filed, it must also be
application of a creditor who has failed to file his claim within the supported by affidavits stating the particulars thereof.
previously limited, the court may, for cause shown and on such terms  When the affidavit is made by a person other than the claimant, he
as are equitable, allow such claim to be filed within a time NOT must set forth therein the reason why it is not made by the
exceeding one (1) month. claimant.
 The claim once filed shall be attached to the record of the case in
SEC. 3. Publication of notice to creditors. — which the letters testamentary or of administration were issued,
 Every executor or administrator shall, immediately after the notice to although the court, in its discretion, and as a matter of convenience,
creditors is issued, cause the same to be published three (3) weeks may order all the claims to be collected in a separate folder.
successively in a newspaper of general circulation in the
province, and to be posted for the same period in four public places SEC. 10. Answer of executor or administrator. Offsets —
in the province and in two public places in the municipality where  Within fifteen (15) days after service of a copy of the claim on the
the decedent last resided. executor or administrator, he shall file his answer admitting or
denying the claim specifically, and setting forth the admission or
SEC. 4. Filing of copy of printed notice. — denial.
 Within ten (10) days after the notice has been published and  If he has no knowledge sufficient to enable him to admit or deny
posted in accordance with the preceding section, the executor or specifically, he shall state such want of knowledge.
administrator shall file or cause to be filed in the court a printed  The executor or administrator in his answer shall allege in offset any
copy of the notice accompanied with an affidavit setting forth the claim which the decedent before death had against the claimant,
dates of the first and last publication thereof and the name of the and his failure to do so shall bar the claim forever.
newspaper in which the same is printed.  A copy of the answer shall be served by the executor or administrator
on the claimant.
b. Filing of claim and Answer  The court in its discretion may extend the time for filing such answer.
RULE 86
SEC. 9. How to file a claim. Contents thereof. Notice to executor or SEC. 6. Solidary obligation of decedent. —
administrator. —  Where the obligation of the decedent is solidary with another debtor,
 A claim may be filed by delivering the same with the necessary the claim shall be filed against the decedent as if he were the only
vouchers to the clerk of court and by serving a copy thereof on the debtor, without prejudice to the right of the estate to recover
executor or administrator. contribution from the debtor.
 If the claim be founded on a bond, bill, note, or any other instrument,  In a joint obligation of the decedent, the claim shall be confined to the
the original need NOT be filed, but a copy thereof with all portion belonging to him.
indorsements shall be attached to the claim and filed therewith.

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 5
 DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

judgment or final order has become final and executory. (2a, 10, R51)
c. Trial to determine claim
RULE 86 RULE 86
SEC. 12. Trial of contested claim. — SEC. 14. Costs. —
 Upon the filing of an answer to a claim, or upon the expiration of the  When the executor or administrator, in his answer, admits and offers
time for such filing, the clerk of court shall set the claim for trial with to pay part of a claim, and the claimant refuses to accept the amount
notice to both parties. offered in satisfaction of his claim, if he fails to obtain a more
 The court may refer the claim to a commissioner. favorable judgment, he cannot recover costs, BUT must pay to the
executor or administrator costs from the time of the offer.
SEC. 11. Disposition of admitted claim. —  Where an action commenced against the deceased for money has
 Any claim admitted entirely by the executor or administrator shall been discontinued and the claim embraced therein presented as in
immediately be submitted by the clerk to the court who may this rule provided, the prevailing party shall be allowed the costs of
approve the same without hearing; his action up to the time of its discontinuance.
o BUT the court, in its discretion, before approving the claim, may
order that known heirs, legatees, or devisees be notified and
heard. e. Appeal
 If upon hearing, an heir, legatees, or devisee opposes the claim, the RULE 86
court may, in its discretion, allow him fifteen (15) days to file an SEC. 13. Judgment appealable. —
answer to the claim in the manner prescribed in the preceding  The judgment of the court approving or disapproving a claim,
section. shall be filed with the record of the administration proceedings
with notice to both parties, and is appealable as in ordinary
cases.
d. Approval/ disapproval of claim  A judgment against the executor or administrator shall be that he
RULE 86 pay, in due course of administration, the amount ascertained to
SEC. 13. Judgment appealable. — be due, and it shall not create any lien upon the property of the
 The judgment of the court approving or disapproving a claim, shall be estate, or give to the judgment creditor any priority of payment.
filed with the record of the administration proceedings with notice to
both parties, and is appealable as in ordinary cases. RULE 88
 A judgment against the executor or administrator shall be that he pay, SEC. 12. Orders relating to payment of debts where appeal is taken.
in due course of administration, the amount ascertained to be due,  If an appeal has been taken from a decision of the court
and it shall not create any lien upon the property of the estate, or give concerning a claim, the court may suspend the order for the
to the judgment creditor any priority of payment. payment of the debts or may order the distributions among the
creditors whose claims are definitely allowed, leaving in the
RULE 36 hands of the executor or administrator sufficient assets to pay the
SEC. 2. Entry of judgments and final orders. — claim disputed and appealed.
 If no appeal or motion for new trial or reconsideration is filed within the  When a disputed claim is finally settled, the court having
time provided in these Rules, the judgment or final order shall forthwith jurisdiction of the estate shall order the same to be paid out of the
be entered by the clerk in the book of entries of judgments. assets retained to the same extent and in the same proportion
 The date of finality of the judgment or final order shall be deemed to be with the claims of other creditors.
the date of its entry.
 The record shall contain the dispositive part of the judgment or final
order and shall be signed by the clerk, within a certificate that such

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 6
DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

D. CLAIM OF EXECUTOR OR ADMINISTRATOR AGAINST AN  A claim may be filed by delivering the same with the necessary
ESTATE vouchers to the clerk of court and by serving a copy thereof on
RULE 86 the executor or administrator.
SEC. 8. Claim of executor or administrator against an estate. —  If the claim be founded on a bond, bill, note, or any other
 If the executor or administrator has a claim against the estate he instrument, the original need NOT be filed, but a copy thereof
represents, he shall give notice thereof, in writing, to the court, with all indorsements shall be attached to the claim and filed
and the court shall appoint a special administrator, who shall, in therewith.
the adjustment of such claim, have the same power and be  ON DEMAND, however, of the executor or administrator, or by
subject to the same liability as the general administrator or order of the court or judge, the original shall be exhibited,
executor in the settlement of other claims. o UNLESS it be list or destroyed, in which case the claimant
 The court may order the executor or administrator to pay to the must accompany his claim with affidavit or affidavits
special administrator necessary funds to defend such claim. containing a copy or particular description of the instrument
and stating its loss or destruction.
 When the claim is due, it must be supported by affidavit stating
E. CONTINGENT CLAIM the amount justly due, that no payments have been made
RULE 86 thereon which are not credited, and that there are no offsets
SEC. 5. Claims which must be filed under the notice. If not to the same, to the knowledge of the affiant.
filed, barred; exceptions. —  If the claim is not due, or is contingent, when filed, it must also be
 All claims for money against the decent, arising from contract, supported by affidavits stating the particulars thereof.
express or implied, whether the same be due, not due, or  When the affidavit is made by a person other than the claimant,
contingent, all claims for funeral expenses and expense for the he must set forth therein the reason why it is not made by the
last sickness of the decedent, and judgment for money against claimant.
the decent, must be filed within the time limited in the notice;  The claim once filed shall be attached to the record of the case in
o otherwise they are barred forever, which the letters testamentary or of administration were issued,
o EXCEPT that they may be set forth as counterclaims in any although the court, in its discretion, and as a matter of
action that the executor or administrator may bring against convenience, may order all the claims to be collected in a
the claimants. separate folder.
 Where an executor or administrator commences an action, or
prosecutes an action already commenced by the deceased in his SEC. 7. Mortgage debt due from estate. —
lifetime, the debtor may set forth by answer the claims he has  A creditor holding a claim against the deceased secured by
against the decedent, instead of presenting them independently mortgage or other colateral security, may abandon the security
to the court as herein provided, and mutual claims may be set off and prosecute his claim in the manner provided in this rule,
against each other in such action; and and share in the general distribution of the assets of the
 if final judgment is rendered in favor of the defendant, the amount estate; or
so determined shall be considered the true balance against the o he may foreclose his mortgage or realize upon his
estate, as though the claim had been presented directly before security, by action in court, making the executor or
the court in the administration proceedings. administrator a party defendant, and if there is a judgment for
 Claims not yet due, or contingent, may be approved at their a deficiency, after the sale of the mortgaged premises, or the
present value. property pledged, in the foreclosure or other proceeding to
realize upon the security, he may claim his deficiency
SEC. 9. How to file a claim. Contents thereof. Notice to executor or judgment in the manner provided in the preceding section or
administrator. — he may rely upon his mortgage or other security alone, and

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 7
DIGEST, SY 2016-2017 Atty. Boomsri Rodolfo
Special Procedings

foreclosure the same at any time within the period of the received from the property of the deceased.
statute of limitations, and in that event he shall not be
admitted as a creditor, and shall receive no share in the
distribution of the other assets of estate;
o BUT nothing herein contained shall prohibit the executor or
administrator from redeeming the property mortgaged or
pledged, by paying the debt for which it is held as security,
under the direction of the court, if the court shall adjudge it to
be for the best interest of the estate that such redemption
shall be made.

RULE 88
SEC. 4. Estate to be retained to meet contingent claims. —
 If the court is satisfied that a contingent claim duly filed is valid, it
may order the executor or administrator to retain in his hands
sufficient estate to pay such contingent claim when the same
becomes absolute, or if the estate is insolvent, sufficient to pay
a portion equal to the dividend of the other creditors.

SEC. 5. How contingent claim becoming absolute in two years

allowed and paid. Action against distributees later. —
 If such contingent claim becomes absolute and is presented to
the court, or to the executor or administrator, within two (2)
years from the time limited for other creditors to present
their claims, it may be allowed by the court if not disputed by the
executor or administrator and, if disputed, it may be proved and
allowed or disallowed by the court as the facts may warrant.
 If the contingent claim is allowed, the creditor shall receive
payment to the same extent as the other creditors if the estate
retained by the executor or administrator is sufficient.
 But if the claim is not so presented, after having become
absolute, within said two (2) years, and allowed, the assets
retained in the hands of the executor or administrator, not
exhausted in the payment of claims, shall be disturbed by the
order of the court to the persons entitled to the same;
o BUT the assets so distributed may still be applied to the
payment of the claim when established, and the creditor may
maintain an action against the distributees to recover the
debt, and such distributees and their estates shall be liable
for the debt in proportion to the estate they have respectively

Arcaina ♠ Austria ♠ Bañadera ♠ Cheng ♠ Coloquio ♠ Diploma ♠ Fajardo ♠ Layno ♠ Lim, J. ♠ Villarin, L. ♠ Villarin, P. 8