For creditors, in-house counsel, and practitioners handling Philippine estates and obligations.

1) Big picture

When a debtor dies in the Philippines, you generally cannot chase the person anymore—you must pursue the estate. The estate is a juridical entity represented in court by an executor (if named in a will) or an administrator (if there’s no will or the executor can’t serve). Money claims go through a special court process called settlement of estate (probate or intestate proceedings). Failing to follow that process usually bars recovery, even if your claim is valid.

2) Legal foundations (what governs the process)

Civil Code
- Obligations don’t extinguish upon death; they’re transmissible to the estate, subject to the rules on claims and preferences of credits.
- Priority and security interests are governed by provisions on preferred credits, liens, and mortgages.
Rules of Court
- Rule 73 (venue), Rule 74 (summary and extrajudicial settlement), Rule 76–79 (probate/letters), Rule 86 (claims against the estate), Rule 87 (actions that may/may not be brought against the executor/administrator), Rule 88 (payment of debts and legacy), Rule 89 (sales, mortgages to pay debts), and Rule 90 (distribution).

Practical takeaway: Money claims (contract, loans, unpaid invoices, judgment debts, etc.) must be filed in the estate case under Rule 86 within the court-fixed creditor period after publication of notice. Some non-money actions may proceed or be filed under Rule 87 (e.g., to recover specific property or enforce a lien).

3) Where to file and who to serve

If an estate proceeding exists: File your claim in that same court (the “probate court”). Serve the executor/administrator (and counsel, if any).
If no estate proceeding yet: A creditor may initiate settlement by petitioning for appointment of a special administrator (urgent preservation), or an administrator (full settlement) so there’s a legal representative to answer the claim.
Venue & jurisdiction:
- Venue is generally in the province/city where the decedent resided at death (or where they had property if non-resident).
- Jurisdiction (which trial court—first-level court or RTC) depends on the value of the estate under the Judiciary Reorganization law and amendments.

4) What kinds of claims must be presented under Rule 86?

Money claims against the decedent, whether due, not yet due, or contingent (e.g., guarantees that might be called).
Judgment debts (you still need to file them as claims; the judgment is proof of indebtedness).
Funeral expenses, expenses of last illness, and administration expenses (typically presented and approved within the proceeding).
Taxes and government charges (file and prove like other claims; see also preference rules).

Not typically “Rule 86” claims: Actions to recover specific property belonging to the plaintiff (not the estate) or to enforce a lien/mortgage may be brought as ordinary civil actions against the executor/administrator under Rule 87—but coordinate with the probate court because it controls estate assets.

5) Deadlines that matter (and why they’re fatal)

After letters are issued, the court orders publication of notice to creditors and sets a filing window (a fixed period following first publication).
File within that creditor period. Claims not filed within the window are generally forever barred from participating in estate assets (subject to narrow statutory exceptions, e.g., contingent claims that become absolute later, or claims arising after the period by leave of court).
Pending money cases against the decedent at the time of death are typically converted into Rule 86 claims and must be presented in the estate; otherwise, they’re dismissed or unenforceable against estate assets.

Strategy: Even if you’re negotiating, file protectively within the creditor period. You can settle later; you cannot resuscitate a late claim.

6) Step-by-step: How to file a claim against the estate

Get the case details.
- Court, case number, name of the estate, and identity of the executor/administrator.
- Secure a copy of the Notice to Creditors to verify the deadline.
Prepare your Claim (Rule 86 pleading).
- Allege the nature and amount, basis (contract, invoice, judgment, guaranty), and whether it’s secured or unsecured, due, not yet due, or contingent.
- Attach evidence: contracts, statements of account, delivery receipts, invoices, ledger, demand letters, checks/RTGS slips, certifications, judgments, or affidavits.
- Compute principal, interests (e.g., contractual or legal interest), penalties, and fees.
- If secured, identify the security (e.g., real estate mortgage, chattel mortgage) and the property.
File and serve.
- File with the probate court (pay filing fees if applicable).
- Serve the executor/administrator (and their counsel). Keep proof of service.
Allowance/Disallowance Stage.
- The executor/administrator may admit or oppose the claim.
- The court may set it for hearing; be ready with witnesses (e.g., account officer) and originals of documents.
- If the claim (secured or unsecured) is allowed, it participates in estate payments under Rule 88.
If your claim is rejected:
- You typically have a short, rule-specified period to bring a separate action or take the remedy the rule prescribes. Track this deadline closely; missing it can be fatal.
Payment/Execution within probate.
- The probate court supervises payment of allowed claims according to priorities and availability of assets.
- If needed, the court may authorize sale/mortgage of estate property (Rule 89) to raise funds.

7) Special handling for secured creditors

If you hold a mortgage/lien, you usually have options:

Rely solely on the security. Enforce the lien (e.g., foreclosure) and be paid from the collateral.
Abandon security and prove claim in full as an unsecured creditor (rarely optimal).
Foreclose, then file a deficiency claim in the estate if the sale proceeds are insufficient (subject to the creditor-period and allowance).

Tip: Identify the collateral early, check possession/encumbrances, and coordinate with the probate court to avoid conflicting orders. If you foreclose outside probate, keep the court informed—probate courts dislike surprises.

8) Contingent, unmatured, and “after-accruing” claims

Contingent claims (e.g., surety/guaranty) should still be presented within the creditor period, describing the contingency.
If the contingency occurs after the period, procedural rules allow limited relief so the claim can still be recognized, but you must act promptly and show cause.
Unmatured debts can be allowed at present value or as provided by rule/contract.

9) Priorities: who gets paid first if the estate is thin

Payments are made under court supervision following the law on preferences of credits and liens. In broad strokes:

Property-specific (special) preferred credits get paid from the specific property they encumber (e.g., taxes on a specific property, mortgage on a described asset).
Ordinary preferred credits compete over the free assets of the estate in the order set by the Civil Code (e.g., certain taxes, wages, support, expenses of last illness and funeral, and administration expenses feature prominently).
Common credits (unsecured, non-preferred) share pro-rata in whatever remains.

Always map your claim to a preference category and prove it. A small preference can mean full recovery when the estate is insolvent.

10) Interest, penalties, fees

Contractual interest/penalties are generally enforceable if not unconscionable and properly proven.
Judicial/legal interest typically applies to forbearance of money at the prevailing legal rate from default or judicial demand; specify your accrual basis and computation.
Attorney’s fees and costs require clear contractual or legal basis and are still subject to court discretion.

11) Offsets and mutual accounts

If both you and the decedent owed each other before death, compensation (set-off) may apply subject to the estate rules.
Raise set-off in your claim and be ready with ledgers and reconciliations.

12) Interplay with pending cases and arbitration

Money cases pending when the debtor dies typically cannot continue to judgment for enforcement against estate assets unless presented as a claim in the probate.
Arbitration clauses remain relevant; courts often allow liquidation of the amount by arbitration but still require presentation in probate for payment.
Foreign judgments must be recognized/enforced in the Philippines and then presented as claims.

13) Collecting when there’s no court case (extrajudicial and small estates)

Extrajudicial settlement (EJS) by heirs (Rule 74):
- Heirs may settle and publish the EJS. Creditors who were not paid can:
  - Claim against the bond (if posted),
  - Sue the distributees within the statutory two-year window from registration/publication to recover to the extent of property received, and
  - Pursue fraud remedies if applicable.
- Practical move: Record a Notice of Claim/Adverse Claim in the Registry of Deeds when real property is involved to put heirs and transferees on notice.
Summary settlement of small estates:
- The Rules allow summary proceedings for small-value estates; courts may use streamlined processes. Creditors still need to appear and prove their claims.

If you learn of an EJS after the fact, act immediately—the law gives creditors limited time and targeted remedies.

14) Asset discovery & preservation

Ask for inventories and accounts; the executor/administrator must file them.
Seek provisional remedies (e.g., injunction) in or coordinated with the probate court if assets are being dissipated.
Consider notices to banks/registries when you have a lien or claim affecting titled assets.

15) Evidence playbook (what convinces probate courts)

Executed contracts, promissory notes, credit applications.
Invoices, delivery receipts, waybills, acceptance notes, and statements of account with detailed aging.
Demand letters and debtor acknowledgments (email/SMS/chat are useful if authenticated).
Payment records (ORs, bank proofs).
For secured debts, mortgage documents, registration proofs, and appraisal/valuation for deficiency computations.
For judgment debts, certified copies of the decision/entry of judgment.

16) Frequent pitfalls (and how to avoid them)

Missing the creditor period. File a protective claim even if you expect an amicable settlement.
Suing heirs personally without first going through the estate. Heirs are not personally liable beyond what they received.
Failing to classify the claim (secured vs unsecured; preferred vs common), forfeiting priority.
Relying on a pending civil case and not presenting a Rule 86 claim.
Under-proving interest/penalties (courts trim unsupported amounts).
Ignoring tax implications—estate tax computations interact with creditor claims.

17) Practical timelines (typical, not guaranteed)

Appointment of representative → publication of Notice to Creditors → creditor period runs.
Claims heard and allowed/disallowed during the administration phase.
Payment occurs after asset realization and according to priorities; if assets are insufficient, expect pro-rata distributions after preferred credits.
Final accounting and project of partition only after debts/expenses are settled.

18) Playbooks by scenario

A. You hold a real estate mortgage.

File your Rule 86 claim identifying the mortgage.
If foreclosing, coordinate with the probate court; after sale, file deficiency claim (if any).
Track taxes/dues on the collateral—they can prime your lien if property-specific.

B. You supplied goods/services on credit.

File a detailed claim with ledgers and delivery proofs.
Ask for allowance of interest and penalties per contract.
Consider set-off if the estate also invoiced you.

C. You won a judgment against the debtor before death.

File a claim attaching the final judgment.
You still need allowance in probate for payment.

D. You learn the heirs executed an EJS without paying you.

Within the allowed period, sue the distributees for the amount unpaid, limited to what they received; consider ancillary remedies and notices.

19) Checklist: documents to bring with your claim

Claim pleading (Rule 86) stating basis, amount, and classification
Contract(s), notes, guarantees, security documents
Billing package (invoices, DRs, SOAs, ledger)
Interest/penalty computation sheet (with basis)
Prior demands and acknowledgments
Proofs of payment/partial payments
For secured claims: proof of registration of lien; appraisal or valuation
For judgment claims: certified judgment/entry of judgment

20) Quick FAQs

Q: Can I sue the heirs directly? Not for a money claim as a first resort. You normally proceed against the estate. After distribution (e.g., via EJS) you may sue distributees to the extent of what they received.

Q: What if the estate has no assets? Your claim may still be allowed for record, but payment depends on assets. If you have collateral or a preferred credit, you may still recover from the specific property.

Q: What if I discovered the debt after the creditor period? Limited remedies exist (e.g., for contingent or after-accruing claims), but they’re narrow and discretionary. Consult counsel immediately.

Q: Do I need to pay documentary stamp tax (DST) on the claim? DST is tied to the underlying instrument, not the act of filing a claim. Ensure the underlying documents were properly taxed to avoid admissibility issues.

21) Practical drafting tips (for lawyers and pro se creditors)

Title your pleading “Verified Claim Against the Estate (Rule 86).”
Plead jurisdictional facts (existence of estate case, publication/period) and attach key exhibits.
Clearly label whether the claim is secured or unsecured, and if you assert preference.
Provide a clean computation table (principal, interest, penalties, running total).
End with a prayer for allowance and payment in due course of administration.

22) Final cautions

Probate courts exercise exclusive control over estate assets. Always keep the probate judge informed of parallel actions (like foreclosure).
Deadlines in estate practice are strict; diary the creditor-period from first publication.
Local practice (filing fees, forms, e-filing) can vary by station; check with the branch clerk.
This article is an educational overview; for case-specific strategy, consult Philippine counsel—small factual differences (e.g., type of security, timing of publication, nature of debt) can change the recommended move.

One-page summary (clip & keep)

Find/trigger the estate case → 2) Calendar creditor period → 3) File a verified Rule 86 claim with exhibits and computations → 4) Prove allowance → 5) Enforce priority/lien → 6) Monitor payments under Rule 88 or pursue collateral; if EJS occurred, sue distributees within the allowed window.

You now have the map—proceed deliberately and on time.