In the Philippines, credit card debt is considered a civil obligation. While the non-payment of such debt does not lead to imprisonment (as the 1987 Constitution prohibits imprisonment for debt), it does empower creditors to pursue judicial remedies to recover the amount owed. This recovery process often culminates in the garnishment of wages and the seizure of assets.

1. The Necessity of a Final and Executory Judgment

It is a common misconception that a bank can unilaterally seize a person's salary or property the moment they default. Under Philippine law, specifically the Rules of Court, a creditor must first file a civil case for "Sum of Money" against the debtor.

Due Process: The debtor must be served with a summons and given the opportunity to file an Answer.
The Writ of Execution: Only after the court renders a decision in favor of the bank, and that decision becomes final and executory, can the court issue a Writ of Execution. This writ is the legal instrument that authorizes a court sheriff to satisfy the judgment through the debtor's properties or income.

2. Garnishment of Wages and Bank Accounts

Garnishment is a species of attachment by which the creditor seeks to subject the property of the debtor in the hands of a third person (like an employer or a bank) to the payment of the debt.

Bank Accounts

Once a Writ of Execution is issued, the sheriff may serve a Notice of Garnishment to banks where the debtor has accounts. Upon receipt:

The bank is legally required to "freeze" the amount specified in the writ.
The bank must report to the court within five days whether the debtor has sufficient funds to cover the debt.
If the debt remains unpaid, the bank will eventually release the garnished funds to the court or the creditor to satisfy the judgment.

Salaries and Wages

The sheriff may also garnish the debtor’s salary. However, this is subject to significant legal limitations under Article 1708 of the Civil Code of the Philippines and the Rules of Court (Rule 39, Section 13).

The Exemption Rule: Laborer’s wages are generally exempt from execution or attachment, except for debts incurred for food, shelter, clothing, and medical attendance.
Public Officers: The salaries of government employees are generally not subject to garnishment because the funds are considered public money until they reach the hands of the employee.

3. Seizure of Personal and Real Property

If the debtor's cash and bank deposits are insufficient, the sheriff may proceed to levy upon the debtor’s other assets.

Order of Levy

The sheriff usually follows a specific order when seizing assets:

Personal Property: Vehicles, electronics, jewelry, and other movable goods.
Real Property: Land, houses, or condominiums, if the personal property is still insufficient to cover the debt.

Properties Exempt from Execution

Under Rule 39, Section 13 of the Rules of Court, certain properties are absolutely exempt from seizure to ensure the debtor maintains a basic standard of living. These include:

The Family Home: As defined by the Family Code, provided it does not exceed a certain value (Php 300,000 in urban areas; Php 200,000 in rural areas as per the 1987 code, though values are often debated in modern contexts).
Necessary Clothing and Household Furniture: Basic items for the debtor and their family.
Tools of the Trade: Instruments, implements, and tools necessary for the debtor’s profession or livelihood (e.g., a carpenter’s tools or a driver’s vehicle, if it is their primary source of income).
Professional Libraries: Books and equipment used by professionals (lawyers, doctors, etc.).
One month’s worth of provisions: Food for the family.

4. The "Right of Set-Off" (Cross-Default)

Distinct from court-ordered garnishment is the contractual Right of Set-Off. Most credit card applications include a clause stating that if the cardholder defaults, the bank has the right to "offset" the debt using funds from any other account the cardholder maintains with that same bank.

Contractual Consent: Because the cardholder signed the terms and conditions, the bank can deduct the debt directly from a savings or checking account without needing a court order.
Limitation: This only applies if the debt and the deposit are held by the same legal entity (the same bank).

5. Remedies for the Debtor

If a sheriff attempts to seize property that is legally exempt or belongs to a third party, the debtor has legal recourses:

Affidavit of Third-Party Claim: If the property seized belongs to someone else (e.g., a spouse's separate property or a rented item).
Motion to Quash Writ of Execution: If there are procedural irregularities in how the writ was issued or implemented.

Summary Table: Asset Seizure Constraints

Category	Status	Legal Basis
Bank Deposits	Subject to Garnishment	Rules of Court, Rule 39
Basic Salary	Partially Exempt	Civil Code, Art. 1708
Family Home	Generally Exempt	Family Code
Tools of Trade	Exempt	Rules of Court, Rule 39
Gov't Salaries	Generally Immune	Jurisprudence (Public Policy)