How to Enforce a Money Judgment in the Philippines: Writs of Execution, Levy, and Garnishment

Enforcing a money judgment in the Philippines is largely governed by Rule 39 of the Rules of Court, related statutes, and jurisprudence. This guide walks you through what happens after you win a monetary case—how to convert that decision into actual payment—covering writs of execution, levy, and garnishment, plus practical pitfalls and defenses you’ll encounter along the way.

1) When a Judgment Becomes Enforceable

Finality and Entry of Judgment

A money judgment is enforceable after it becomes final and executory (i.e., no appeal is timely filed, or all appeals have been resolved). The clerk of court enters the judgment, triggering the timelines for execution.

Execution by Motion vs. Action to Revive

Within 5 years from finality: Execution is as a matter of right via motion in the same case.
After 5 years but within 10 years: You must file an independent action to revive the judgment; once revived, it is again enforceable by motion.
After 10 years from finality: The judgment prescribes and can no longer be enforced.

Execution Pending Appeal (Exceptional)

A trial court may allow execution pending appeal for compelling, superior reasons stated in a special order, often with the judgment obligee posting a bond. This is uncommon for money judgments and tightly scrutinized.

2) The Writ of Execution

Getting the Writ

The judgment obligee (winning party) files a motion for issuance of a writ of execution. Once granted, the court issues the writ, typically addressed to the sheriff or proper officer, commanding satisfaction of the judgment in the amounts stated (principal, legal interest, costs, and fees).

Sheriff’s Duties

Upon receipt, the sheriff must:

Demand immediate payment from the judgment obligor (losing party). Cash, certified bank checks, or other forms acceptable to the obligee may be taken.
If unpaid, levy on properties not exempt from execution in an order designed to minimize prejudice—customarily:
- First on personal property (including bankable assets and movable goods),
- Then on real property (land and improvements),
- Or directly on credits and receivables through garnishment.
Conduct sale or arrange garnishment to realize the amount due.
Make a detailed Sheriff’s Return to the court, accounting for all acts done under the writ.

Alias Writs

If a writ is returned unsatisfied or partially satisfied, the court may issue alias writs as long as the enforcement period has not expired.

3) Levy: Reaching the Debtor’s Property

Levy is the act of seizing or legally encumbering property to satisfy the judgment.

Personal Property

The sheriff identifies and seizes non-exempt movables (vehicles, equipment, inventory, shares of stock evidenced by certificates, etc.).
Notice and proper inventory are essential. Perishables may be sold quickly.

Real Property

The sheriff levies by describing the property in the levy notice and causing annotation with the Register of Deeds where the land is registered (or by posting/recording for unregistered land).
Proper notice of sale is posted and published when required.
The property is sold at public auction to the highest bidder; the sheriff issues a Certificate of Sale.

Redemption of Real Property

The judgment obligor (and qualified redemptioners like lienholders) generally has one (1) year from the sale to redeem real property by paying the purchase price plus statutory additions.
During the redemption period, the purchaser may be entitled to rents and profits, subject to accounting rules; possession issues depend on the nature of the property and specific orders.

Distribution of Proceeds

Costs and sheriff’s fees are paid first, then the judgment debt plus interest, with any surplus returned to the debtor.
If proceeds are insufficient, the obligee may pursue other assets or garnish credits until fully satisfied, within the enforceable period.

4) Garnishment: Reaching Debtor’s Credits and Debts Owed by Third Parties

Garnishment targets the debtor’s credits, bank deposits, receivables, salaries, and other intangibles held by a third party (the garnishee).

How It Works

The sheriff serves the writ of execution and a notice of garnishment on the garnishee (e.g., a bank, employer, customer).
From receipt, the garnishee is bound to hold the credits up to the amount of the judgment and must report and deliver as directed by the court/sheriff.
Failure of a garnishee to honor a valid garnishment can lead to direct liability (as if the garnished funds were turned over) and/or contempt.

Banks and Deposits

Peso deposits are generally garnishable upon proper court process. Bank secrecy protects disclosure, not the act of garnishment itself.
Foreign currency deposits (e.g., USD accounts under the Foreign Currency Deposit Act) are generally exempt from garnishment without the depositor’s written consent.
Trust, pension, or retirement funds may have statutory or trust restrictions—examine the plan or law before proceeding.

Wages and Salaries

Public policy protects wages. As a rule, laborers’/employees’ wages are exempt from execution or garnishment subject to narrow statutory exceptions (e.g., certain obligations like support). For private employment, also heed Labor Code limitations on wage deductions and protected benefits.
Government salaries and funds: State funds are typically immune from garnishment; satisfaction of money judgments against the government requires appropriate claims processing (e.g., via COA). In contrast, many GOCCs with separate corporate personality may be garnished, depending on their charter and function.

Employers and Accounts Receivable

For receivables, service of garnishment on the debtor’s customers binds amounts due and to become due (to the extent allowed), turning the garnishee into a “virtual party” obliged to remit.

5) What You Cannot Take: Exemptions from Execution

Common exemptions include (non-exhaustive; verify the current text of Rule 39 and special laws):

Necessary clothing, modest household furniture and utensils, and provisions for individual or family use for a limited period.
Tools and implements necessary for trade or profession, up to reasonable value.
Professional libraries and some equipment used in livelihood.
Family home, subject to Family Code rules (beneficiaries, constitutive rules, and value ceilings) and to specific exceptions (e.g., for debts for the purchase price, taxes, or improvements).
Pensions, retirement benefits, and life insurance proceeds to the extent protected by law.
Wages/salaries as discussed above, within statutory limits.

If the sheriff levies on exempt property, the debtor should promptly claim the exemption before the executing court; the court resolves the claim summarily.

6) Third-Party Claims (Terceria) and Adverse Claims

When the property levied belongs to someone else, that third person can file a third-party claim with supporting proof:

The sheriff may require the judgment obligee to post an indemnity bond to proceed; otherwise, the sheriff should refrain from selling the disputed property.
The third party may independently file an action to recover the property (e.g., replevin or reivindicatory action) and seek damages.
For registered land, an adverse claim or other annotation with the Register of Deeds may help protect ownership during execution.

7) Sales on Execution

Personal Property

Sold to the highest bidder; the sale is typically final, transferring ownership free from subsequent claims except those preserved by law.

Real Property

Notice requirements (posting and, where applicable, publication) are mandatory.
After the sale, the sheriff issues a Certificate of Sale and makes proper registrations/annotations.
Redemption period usually runs one year from the date of sale; if no redemption, the purchaser gets a final deed and may consolidate title.

Irregularities and Remedies

Substantial defects in notice, levy, or sale (e.g., failure to publish when required, sale of exempt property) may justify annulment of the sale or set aside the levy.
Minor irregularities that don’t prejudice substantial rights may not void the sale; courts look for actual prejudice.

8) Post-Judgment Discovery and Debtor’s Examination

If collection stalls, the obligee can:

Use subpoenas and examination of the judgment obligor (and even third parties) to discover assets (bank accounts, receivables, shares, realty).
Seek orders for the turnover of specific property, including documents of title or stock certificates.
Compel periodic installments only where statutes allow (routine installment orders for money judgments are not standard in Philippine practice; instead, courts rely on levy/garnishment and contempt for disobedience of lawful orders).

9) Interest, Costs, and Priorities

Legal Interest

Pre- and post-judgment interest follow Supreme Court policy and BSP rates in force at relevant periods. The writ should expressly include interest “until fully paid.”

Priority of Claims

Secured creditors (e.g., mortgagees) and statutory liens may have priority over execution purchasers.
Taxes and assessments often prime private claims.
Competing execution creditors may race to levy; first valid levy on specific property usually prevails, subject to prior liens.

10) Resisting or Regulating Execution

A judgment obligor (or affected third party) may:

Move to quash the writ (e.g., lack of jurisdiction, variance between writ and judgment, or the judgment has been satisfied or superseded).
Claim exemptions or third-party ownership.
Challenge excessive or oppressive execution (e.g., levying assets far exceeding the judgment).
Seek injunctive relief in exceptional cases (especially where property rights would be irreparably harmed and legal remedies are inadequate).
File independent actions (e.g., annulment of sale) for grave irregularities.

Sheriffs must act impartially and within the writ; abuse, collusion, or neglect can result in administrative and civil liability, and the bond posted can answer for damages.

11) Special Contexts and Forums

Small Claims/First-Level Courts (MTC/MeTC/MCTC): Same Rule 39 mechanisms; smaller amounts but identical execution tools.
Family Court Judgments (Support): Often enforced with a mix of execution and contempt remedies unique to support obligations.
Labor/NLRC Awards: Enforced by labor sheriffs under the NLRC Rules; procedures are akin to Rule 39 but follow agency-specific regulations.
Judgments vs. Government: Monetary awards against the Republic and its agencies are generally not satisfied by levy/garnishment of public funds; the prevailing party usually processes payment via COA mechanisms or budget appropriation. For GOCCs, examine charter and jurisprudence to see if funds are garnishable.

12) Practical Checklist for Judgment Creditors

Calendar the 5-year / 10-year windows from date of finality.
File a motion for writ of execution; attach a computation (principal, interest to date, costs).
Provide the sheriff with leads: bank branches, plate numbers, TCT/CCT numbers, employer details, major customers, stockholdings.
Consider garnishment first if you know the employer/bank—often faster and cleaner than a real property sale.
For real property: verify liens, request updated tax declarations, and ensure notice/publication requirements are met.
Anticipate exemption and third-party issues; prepare evidence (e.g., proof of ownership, nature of funds).
Track interest accrual until full satisfaction; seek alias writs if needed.
Review the Sheriff’s Return and move promptly to correct gaps or irregularities.

13) Practical Checklist for Judgment Debtors

Verify finality and scope of the writ; check for overstatement.
Assert exemptions and third-party claims swiftly and with proof.
If paying, insist on official receipts and ensure the Sheriff’s Return reflects satisfaction.
Consider negotiated payment plans; while courts don’t routinely order installments, parties may stipulate and seek court recognition to regulate execution.
If government funds or foreign currency deposits are implicated, raise the proper immunities/exemptions.

14) Common Traps and Tips

Foreign currency deposits: Treat as non-garnishable absent depositor consent.
Family home: Often claimed as exempt but subject to exceptions (purchase price, taxes, improvements). Check value ceilings and proper constitution under the Family Code.
Corporate debtors: If assets are intermingled with affiliates, resist the urge to “pierce the veil” in execution itself; do so via appropriate incidental or independent proceedings and orders.
Premature sale: Ensure levy and notice/publication are complete; deficient notice can void a sale.
COA route: For judgments vs government, plan early for COA procedures; attempting bank garnishment of public funds will usually fail and waste time.

15) Bottom Line

Turning a money judgment into cash hinges on speed, strategy, and strict compliance with Rule 39:

Writ of Execution starts the process.
Levy reaches tangible assets; garnishment reaches intangibles like bank deposits and receivables.
Always account for exemptions, time bars, and special protections (wages, foreign currency deposits, public funds).
Diligent asset investigation, prompt motions, and careful supervision of the sheriff’s acts often make the difference between a paper victory and real recovery.

This article is a practical overview. For specific cases, consult the current Rules of Court, special laws, and the latest Supreme Court rulings.