Creditor S Rights

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Art. 1177, CC.

The creditors, after having pursued the property in possession of the debtor to
satisfy their claims, may exercise all the rights and bring all actions of the latter for the same
purpose, save those which are inherent in his person; they may also impugn the acts which the
debtor may have done to defraud them.

Art. 22367, CC. the debtor is liable with all his property, present and future, for the fulfillment
of his obligations, subject to the exemptions provided by law.

ACCION SUBROGATORIA

The right of the creditor to exercise all of the rights and to bring all of the actions of the
debtor against third persons

REQUISITES

1. the debtor to whom the right or action properly pertains must be indebted to the
creditor;
2. the latter must be prejudiced by the inaction or failure of the debtor to proceed against
the third person; and
3. the creditor must have first pursued or exhausted all of the properties of the debtor
which are not exempted from execution.

When all of these conditions are present, the creditor can then proceed directly against the third
person in place of the debtor.

In accion subrogatoria, the creditor merely acts in the name and for the account of the debtor
after exhausting all of the assets of the latter.

The right of the creditor to exercise all of the rights and to bring all of the actions of the debtor
against third persons

EXCEPTION. Rights which are purely personal in the sense that they are inherent in the person
of the debtor, such as rights arising from purely personal or family relations or those which are
public or honorary in character, cannot be included within the scope of this remedy.

ACCION PAULIANA (Art. 1380-1389 Rescissible contracts)

 Creditors may also impugn the acts which the debtor may have done to defraud them.
[Art. 1177, CC]
This may be illustrated by alienations or conveyances of property made by the debtor to third
persons in fraud of creditors.

 Par. 3, Art. 1381. The following contracts are rescissible:


o (3) Those undertaken in fraud of creditors when the latter cannot in any other
manner collect the claims due them.

For an accion pauliana to accrue, the following requisites must concur:

1) That the plaintiff asking for rescission has a credit prior to the alienation, although
demandable later;
2) That the debtor has made a subsequent contract conveying a patrimonial benefit to a
third person;
3) That the creditor has no other legal remedy to satisfy his claim, but would benefit by rescission of
the conveyance to the third person;
4) That the act being impugned is fraudulent;
5) That the third person who received the property conveyed, if by onerous title, has been
an accomplice in the fraud.

An accion pauliana thus presupposes the following:

1) A judgment;
2) the issuance by the trial court of a writ of execution for the satisfaction of the judgment;
and
3) the failure of the sheriff to enforce and satisfy the judgment of the court.

ACCION DIRECTA:

Art. 1652 (sublessee),

The sublessee is subsidiarily liable to the lessor for any rent due from the lessee.
However, the sublessee shall not be responsible beyond the amount of rent due from
him, in accordance with the terms of the sublease, at the time of the extra-judicial
demand by the lessor

Art. 1729 (laborers against owner),

Those who put their labor upon or furnish materials for a piece of work undertaken by
the contractor have an action against the owner up to the amount owing from the latter
to the contractor at the time the claim is made. However, the following shall not
prejudice the laborers, employees and furnishers of materials:

(1) Payments made by the owner to the contractor before they are due;

(2) Renunciation by the contractor of any amount due him from the owner.

This article is subject to the provisions of special laws.

Art. 1608 (vendor against possessors);

The vendor may bring his action against every possessor whose right is derived from the
vendee, even if in the second contract no mention should have been made of the right to
repurchase, without prejudice to the provisions of the Mortgage Law and the Land
Registration Law with respect to third persons.

Art. 1893 (principal against substitute)

In the cases mentioned in Nos. 1 and 2 of the preceding article, the principal may
furthermore bring an action against the substitute with respect to the obligations which
the latter has contracted under the substitution

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