This is general information for the Philippine setting and not a substitute for tailored legal advice.

Big Picture

Children are not personally liable for a deceased parent’s debts.
The estate (the property and rights left by the deceased) pays valid debts first before any inheritance is distributed.
Heirs may become liable only up to the value of what they inherit—and only after proper procedures.
Creditors must claim against the estate through settlement/probate rules, not by harassing family members.

Legal Foundations (Philippine Civil/Family Law & Rules of Court—plain-English summary)

Privity of contracts: Only parties to the contract are bound. A parent’s loan doesn’t bind a child who didn’t agree to be liable.
Succession: On death, transmissible rights and obligations pass to the estate. The estate is a separate juridical “pool” that pays debts.
Estate settlement: Before heirs receive anything, debts, taxes, and expenses of administration are paid in an order set by the Rules of Court.
Extent of heir liability: Heirs answer for estate debts only to the extent of the assets they actually receive (never beyond their share, unless they contractually assumed more).
Community/Conjugal property: If the deceased was married, creditors may reach the decedent’s separate property and the decedent’s share of community/conjugal property, depending on the nature of the obligation.
Exempt/Excluded assets (common examples):
- Life insurance proceeds payable to a named beneficiary (not “to the estate”) generally do not form part of the estate for paying creditors.
- The family home has statutory protection against execution, with important exceptions (taxes, debts prior to constitution, debts secured by a mortgage on the home, claims of workers who built/repaired it).
- Certain retirement, SSS/GSIS, and similar benefits may be protected or governed by special rules.
- Trust assets validly segregated from the decedent’s ownership aren’t estate property.

When Can a Creditor Look to the Children?

Only in these specific situations:

You signed something: You are a co-maker, co-borrower, guarantor/surety, or you issued your own promissory note. You’re liable under your contract, not by reason of being a child.
You received estate assets: After settlement, you received property from the estate; a creditor with an unpaid, valid claim can pursue the property you received, but only up to its value (and usually through court channels).
Fraudulent transfers: If property was transferred to you to defeat creditors, the transfer can be voided.
You pledged/mortgaged your own property to secure the parent’s debt. The creditor can foreclose that collateral.

If none of the above applies, you’re not personally liable.

What Creditors Can Claim Against

Estate assets: All property owned by the decedent at death.
Mortgaged/secured property: The creditor may foreclose on the specific collateral (e.g., the mortgaged house or car).
Conjugal/community share of the decedent: If the debt benefited the family enterprise or falls under allowed categories, creditors can reach the decedent’s half (or relevant share) after liquidation.

They generally cannot take:

Your personal salary/savings (not inherited).
Your spouse’s separate property.
Insurance proceeds payable to a named beneficiary (again, not the estate).
Family home, except for the statutory exceptions above.

The Correct Process for Creditor Collection

Open estate proceedings (judicial or, when allowed, extrajudicial if all heirs agree and there are no debts or debts have been settled).
Publication & notice to creditors: The court (in probate) sets a claims period.
Creditors file claims within the allowed time, attach evidence, and submit to court scrutiny.
Executor/administrator evaluates and pays approved claims following legal priorities, from estate funds.
Distribution to heirs happens only after payment of debts, taxes, and costs.

If a creditor skips this process and harasses the children, that’s improper. The remedy is to direct them to the estate (or its administrator) and, if necessary, report abusive practices.

Priority of Payments (typical order)

Expenses of administration (court costs, executor/administrator fees).
Funeral and last illness expenses (reasonable).
Taxes and government charges (including estate tax, which is an estate liability).
Debts secured by liens (to the value of the collateral).
Wages/compensation due to employees, where applicable.
Other unsecured debts.

Only after these are satisfied do heirs receive any remainder.

Special Asset Notes

Life Insurance: If the policy names a beneficiary other than the estate, proceeds are generally shielded from estate creditors and pass outside probate. If the estate is the beneficiary (or there is no beneficiary), the proceeds become estate property and can be used to pay debts.
Family Home: Protected against execution except for (a) taxes, (b) debts prior to constitution, (c) mortgage on the home itself, and (d) claims of workers/materialmen for its construction/repair. Protection typically continues so long as qualified family members occupy it (and is recognized even after the death of a spouse).
Conjugal/Community Property: Must be liquidated; only the decedent’s share (net of liabilities) goes to the estate. A debt that clearly pertains to the absolute community/conjugal partnership may first be satisfied from community funds before touching separate property.
Trusts & Pay-on-Death (POD)/Transfer-on-Death (TOD) designations: If validly arranged, assets may pass outside the estate, subject to rules on legitime and creditors’ rights to challenge fraudulent transfers.

Typical Scenarios

1) Credit card debt (unsecured):

Children are not liable. The bank must file a claim in the estate.
Supplementary cardholders: liability depends on the card contract. If only an additional user, usually no personal liability unless the agreement says otherwise.

2) Car loan with chattel mortgage:

The creditor may repossess the car (collateral) from the estate if in default.
Any deficiency becomes an unsecured claim against the estate.

3) Home loan with real estate mortgage:

The lender can foreclose against the mortgaged property if unpaid.
Deficiency (if any) is an estate claim.

4) Medical and hospital bills:

Unsecured claims against the estate. Hospitals cannot bill children personally unless they signed as solidary debtors.

5) Personal loans/PNs from friends or lenders:

Must be proved and filed within the claims period.
If the claim is time-barred by prescription or filed out of time in probate, it may be denied.

6) Unpaid taxes:

Estate owes estate tax and any other taxes of the decedent. The BIR collects from estate assets, not from the heirs’ separate property.

Practical Steps for Children

Don’t promise to pay personally. Say: “Please file your claim in the estate.”
Secure documents: death certificate, titles, bank statements, policies, loan contracts, receipts.
Identify estate property and whether there’s conjugal/community property to liquidate.
Check for a will; if none, plan for intestate settlement.
Open probate/estate settlement (court) or extrajudicial settlement only if (a) all heirs are of age and agree, and (b) there are no debts or debts have been fully settled—otherwise, go judicial.
Publish notice to creditors (probate) and calendar the claims period.
Evaluate claims: demand originals, compute interests/penalties, verify signatures/authority, check prescription, and ensure proper documentation.
Pay only approved claims from estate funds and in order of priority.
Document everything: inventories, valuations, receipts, waivers, quitclaims, tax clearances.
Distribute the remainder only after tax clearances and court approval (if judicial).

How to Respond to a Collecting Creditor (template)

“We acknowledge your notice. Our parent, [Name], passed away on [Date]. Under Philippine law, any claim should be filed against the estate in the pending settlement proceedings (Case No. [____], [Court]/or ‘probate to be opened’). We, the heirs, do not assume personal liability for the decedent’s obligations. Kindly direct all formal claims and supporting documents to the estate representative once appointed. Thank you.”

(If probate is already open, include the case details; if not yet, say that estate proceedings will be initiated and that you will provide details once available.)

Red Flags & Common Mistakes

Paying from your own pocket “to make them go away”—this can’t be reimbursed if the claim turns out invalid or time-barred.
Signing “acknowledgments” or restructurings as an heir—these can inadvertently create personal liability.
Self-adjudicating property (extrajudicial settlement) when debts exist—creditors can later annul the settlement or pursue your distributed share.
Letting foreclosure proceed without checking defenses, valuation, or arrears computations.
Ignoring estate tax—you generally need a BIR eCAR to transfer property.

FAQs

Q1: The bank is calling me every day—can they do that? They can notify you of a claim, but persistent harassment, shaming, or threats may violate consumer protection and data privacy rules. Provide the estate route and refuse personal undertakings.

Q2: We already divided the properties, then a creditor appeared. What now? A creditor with a valid, timely claim can pursue the heirs to the extent of the value each one received. Coordination or partial reconveyance may be required; often this returns to court.

Q3: Can we keep the family home safe? Often yes, subject to statutory exceptions (taxes, pre-constitution debts, mortgage on the home, workers’ claims). Confirm whether the property qualifies as a family home and whether an exception applies.

Q4: Are we liable for mom/dad’s credit card if we’re supplementary users? Usually no, unless the card agreement makes supplementary users solidarily liable or you signed as such.

Q5: What if the estate has more debts than assets? The estate is insolvent. Creditors are paid pro rata by legal priority, and heirs receive nothing—but still no personal liability for the shortfall.

Checklist for Heirs

Gather documents and identify estate assets/debts
Decide on judicial probate (recommended if there are debts)
Petition for appointment of executor/administrator
Publish notice to creditors; track claims period
Validate claims; challenge unlawful interest/penalties and time-barred claims
Liquidate community/conjugal property if applicable
Pay approved claims from estate funds in priority order
Secure BIR eCAR and tax clearances
Distribute remainder; execute deed of adjudication/partition
Update land titles, vehicle CR/OR, bank accounts, and utility records

Bottom Line

Creditors cannot collect from the children for a deceased parent’s debts unless the child personally agreed to be liable or received estate assets (and then only up to the value received). The proper path is through the estate, under court-supervised rules that protect both creditors and heirs. If pressed, insist on formal estate procedures—and avoid signing anything that turns a parent’s debt into your debt.