The Family Home and Your Debts

Family Code of the Phils.

Art. 152.
The family home, constituted jointly by the husband and the wife or by an unmarried head of a family, is the dwelling house where they and their family reside, and the land on which it is situated.

Art. 153.
The family home is deemed constituted on a house and lot from the time it is occupied as a family residence.

Art. 155.
The family home shall be exempt from execution, forced sale or attachment.

Art. 157.
The actual value of the family home shall not exceed, at the time of its constitution, the amount of the three hundred thousand pesos in urban areas, and two hundred thousand pesos in rural areas, or such amounts as may hereafter be fixed by law.

In any event, if the value of the currency changes after the adoption of this Code, the value most favorable for the constitution of a family home shall be the basis of evaluation.

RULES OF COURT
RULE 39
EXECUTION, SATISFACTION AND EFFECT OF JUDGMENTS

Sec. 9. Execution of judgments for money, how enforced
b) Satisfaction by levy.
the officer shall levy upon the properties;
The sheriff shall sell only a sufficient portion of the personal
or real property of the judgment obligor.

In other words, if your property is valued at P 1Million;
Your debt is P400,000.00 only, the sheriff will pay you
back P 600,000.00 once your property is "sold".

What if it is mortgaged?
If it is mortgaged for P 800,000.00, the sheriff will
pay the creditor P 800,000.00!
Would the bank be that stupid enough?