Would you inherit your parents' debt? (Mamamana mo ba ang utang ng iyong magulang?)
This is one of the questions that is frequently asked in forums. A realistic situation as stated by one of our readers.
After my father passed away, he still had outstanding balances on his credit cards. Are we required to settle his credit card debt? Can the credit card company pursue us for payment?
(Nang mamatay ang aking ama, mayroon pa rin siyang natitirang balanse sa kanyang mga credit card. Required ba tayong bayaran ang utang niya sa credit card? Maaari ba kaming ituloy ng kumpanya ng credit card para sa pagbabayad?)
In response to the question, the credit card company can only pursue a claim against your deceased father's estate. His estate bears the responsibility for settling his unpaid debts, not you or your fellow beneficiaries.
Through succession, the assets, entitlements, and liabilities, such as debts, are transferred from a deceased individual to their heirs, but only up to the value of the inheritance. However, this does not imply that creditors can pursue the deceased person's heir on a personal basis. Creditors are only entitled to pursue the estate of the deceased individual.
Ang ibig pong sabihin nito ay ang mahahabol po ng banko is ang estate niya. Ito yung mga properties na nakapangalan or pag-aari niya nang mamatay siya. Although. it is not an ideal scenario kasi makukuha yan sa supposedly ma-iinherit mo, pero at least hindi ka na hahabulin ng banko.. They don't have the right to claim againsts you and any form of collecting debt agains you (and not the estate of your deceased father) is considered harrasment.
To cite a case with Estate of Hemady v. Luzon Surety Co., Inc. (GR L-8437, Nov. 28, 1958), it was held that;
"While in our successional system the responsibility of the heirs for the debts of their decedent cannot exceed the value of the inheritance they receive from him, the principle remains intact that these heirs succeed not only to the rights of the deceased but also to his obligations. Articles 774 and 776 of the New Civil Code (and Articles 659 and 661 of the preceding one) expressly so provide, thereby confirming Article 1311 already quoted.