CREDITOR CAN ACCEPT INHERITANCE OF A DEBTOR

Dear PAO,

I have a problem collecting payment from one of my debtors. He belongs to a well-respected family and
I recently found out that because of a family dispute, he refused and waived his right to receive an
inheritance from a family member. I am privy to some of the details in the supposed inheritance and I
was expecting to receive payment from him out of the said inheritance. It is because of this that I want
to know if there is a legal way to claim my debtor’s share in his inheritance as payment for his debts to
me. I hope for your advice

Rodger

Dear Rodger,

The Civil Code of the Philippines provides for a remedy in claiming the inheritance of a debtor as
payment to a creditor. The law states that:

“Article 1052. If the heir repudiates the inheritance to the prejudice of his own creditors, the latter may
petition the court to authorize them to accept it in the name of the heir.

The acceptance shall benefit the creditors only to an extent sufficient to cover the amount of their
credits. The excess, should there be any, shall in no case pertain to the renouncer, but shall be
adjudicated to the persons to whom, in accordance with the rules established in this Code, it may
belong.”

This provision is applicable to your situation considering that your debtor is an heir who repudiates his
inheritance. The decision of your debtor to renounce his inheritance prejudices your standing as his
creditor. This repudiation of an inheritance unfavorably affects your debtor’s ability to pay his
obligations to you. As such, you may rightfully file a legal action so that the courts can authorize you to
accept your debtor’s inheritance to satisfy his debts to you.

It should be noted however that the right of a creditor to accept the inheritance of a debtor is limited
only to the amount sufficient to satisfy the obligation. Any amount exceeding a debtor’s obligation is still
subject to the repudiation of the said debtor as an heir.