Article 155 of the Family Code: When the family home can be seized
Status: In force
What does Article 155 say?
The family home shall be exempt from execution, forced sale or attachment except:
(1) For nonpayment of taxes;
(2) For debts incurred prior to the constitution of the family home;
(3) For debts secured by mortgages on the premises before or after such constitution; and
(4) For debts due to laborers, mechanics, architects, builders, materialmen and others who have rendered service or furnished material for the construction of the building.
What does it mean in plain language?
Article 155 of the Family Code protects the family home from creditors. As a rule, it cannot be taken through execution, forced sale or attachment. There are four exceptions: unpaid taxes, debts incurred before the home was constituted, debts secured by a mortgage on the home, and debts owed to those who built it or supplied its materials.
"Execution" is the court process to enforce a judgment, for example by selling the debtor's property. "Attachment" is a court order that holds property as security while a case is pending. A "forced sale" is a sale ordered against the owner's will.
How does it work in real life?
Vic and Wena: a personal loan
Vic and Wena live in their own house, a family home since they moved in. Years later Vic takes a personal loan and does not pay. The lender wins a court case. As a rule, the lender cannot have the family home sold, unless the Article 160 conditions are proven.
Vic and Wena: a bank mortgage
The same house is mortgaged to a bank to secure a housing loan. If they default, the bank may foreclose, because Article 155(3) excepts debts secured by mortgages on the premises.
Joel: the contractor
Joel did not pay the contractor who built his family home. The contractor's claim falls under Article 155(4), so the exemption does not protect the home from it.
These are made-up examples to show how the rule works. They are not advice for any real case.
What does this mean in practice?
- A family home sold, donated or mortgaged by its owners needs the written consent of the person who constituted it, that person's spouse, and a majority of the beneficiaries of legal age (Article 158).
- What the family home is and who benefits from it: Article 152.
- On debts in general, see how many years to collect a debt? and can you go to jail for unpaid debt?, and the topic debt and collection.
- For a question-and-answer guide, see can creditors take the family home?
What does Article 155 say?
The family home shall be exempt from execution, forced sale or attachment except: (1) For nonpayment of taxes; (2) For debts incurred prior to the constitution of the family home; (3) For debts secured by mortgages on the premises before or after such constitution; and (4) For debts due to laborers, mechanics, architects, builders, materialmen and others who have rendered service or furnished material for the construction of the building.
Which debts can still reach the family home?
- Taxes. Nonpayment of taxes.
- Older debts. Debts incurred before the family home was constituted. A family home is constituted when the family starts living in it (Article 152 explains this).
- Mortgages. Debts secured by a mortgage on the house and lot, whether the mortgage came before or after the home was constituted.
- Builders and suppliers. Debts to laborers, mechanics, architects, builders, materialmen and others who worked on or supplied materials for the building.
Any other creditor, for example a lender with an unsecured personal loan taken after the family moved in, generally cannot have the home sold, except under Article 160 below.
Is there a value limit?
Yes. Article 153 says the exemption applies "to the extent of the value allowed by law". Article 157 sets the actual value of the family home, at the time it is constituted, at no more than three hundred thousand pesos (₱300,000) in urban areas and two hundred thousand pesos (₱200,000) in rural areas, "or such amounts as may hereafter be fixed by law". If the value of the currency changes, the value most favorable to the family home is used.
In Eulogio v. Bell (2015), the Supreme Court summarized it this way: the exemption is limited to ₱300,000 in urban areas and ₱200,000 in rural areas, unless those maximum values are adjusted by law, and if those amounts no longer match the value of the peso, the value most favorable to the family home is the basis.
What if the home is worth more than the limit?
Article 160 gives creditors outside the Article 155 list one route. A creditor who has a judgment and reasonable grounds to believe the family home is worth more than the Article 157 maximum may ask the court that rendered the judgment to order an execution sale. The court orders it if the actual value exceeds the maximum allowed at the time of constitution. At the sale, no bid below the value allowed for a family home is considered. The proceeds go first to that amount, then to the judgment debt and costs, and any excess to the debtor.
In Eulogio v. Bell (2015), the Court said the creditor must establish that the actual value increased, that the increase came from voluntary improvements by the persons who constituted the home, its owners or beneficiaries, and that the increased value exceeded the Article 157 maximum. The creditors there failed to prove it, so the home could not be sold on execution.
Does the date of the debt matter?
Yes. In Ramos v. Pangilinan (2010), the Court said the debts for which the family home is made answerable must have been incurred after the Family Code took effect. For debts incurred before, the home must be shown to have been constituted judicially or extrajudicially under the Civil Code. The Court also said the claim for exemption must be set up and proved.
Frequently asked questions
Can a creditor seize my family home?
As a rule, no. Article 155 of the Family Code says the family home is exempt from execution, forced sale or attachment. The exceptions are taxes, debts incurred before the home was constituted, debts secured by a mortgage on it, and debts to those who built or supplied materials for it.
Can the bank foreclose a mortgaged family home?
Yes. Article 155(3) excepts debts secured by mortgages on the premises, whether the mortgage was made before or after the family home was constituted.
Is the exemption unlimited?
No. Article 153 says the exemption applies to the extent of the value allowed by law. Article 157 sets the limits at constitution: three hundred thousand pesos in urban areas and two hundred thousand pesos in rural areas, or amounts later fixed by law.
What can a creditor do if the home is worth more than the limit?
Under Article 160, a creditor with a judgment, whose claim is not among the Article 155 exceptions, may ask the court for an execution sale if the actual value exceeds the limit. At the sale, no bid below the value allowed for a family home is considered, and the proceeds go first to that amount, then to the judgment and costs.
Must I prove that my house is a family home?
Yes. In Ramos v. Pangilinan (2010), the Supreme Court said the claim for exemption must be set up and proved.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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