Right of judgment creditor to examine debtor when execution returned unsatisfied.
SEC. 474. Right of judgment creditor to examine debtor when execution returned unsatisfied. — When an execution against property of a judgment debtor, or of any one of several debtors in the same judgment, issued to the governor, or his deputy, for the province where the defendant resides, or, if he does not reside in the Philippine Islands, to the governor, or his deputy, of the province where the judgment was rendered, is returned unsatisfied, in whole or in part, the judgment creditor, at any time after such return is made shall be entitled to an order from a judgment of the Court of First Instance of the province wherein the judgment was rendered, requiring such judgment debtor to appear and answer concerning his property before such judge, or a referee appointed by him, at the time and place specified in the order; but no judgment debtor must be required to attend before a judge or referee out of the province in which he resides or is found.
Method of obtaining such examination.
SEC. 475. Method of obtaining such examination. — After the issuing of execution against property and upon proof, by affidavit of a party or otherwise, to the satisfaction of the judge, that any judgment debtor has property which he unjustly refuses to apply toward the satisfaction of the judgment, such judge may, by an order, require the judgment debtor to appear at a specified time and place, before such judge, or a referee appointed by him, to answer concerning the same; and such proceedings may thereupon be had for the application of the property of the judgment debtor toward the satisfaction of the judgment as are hereinafter prescribed. Instead of the order requiring the attendance of the judgment debtor, the judge may, upon affidavit of the judgment creditor, his agent or lawyer, if it appears to him that there is danger of the debtor absconding, order the officer to arrest the debtor, and bring him before such judge. Upon being brought before the judge, he may be ordered to enter into an undertaking, with sufficient surety, that he will attend from time to time before the judge or referee, as may be directed, during the pendency of the proceedings, and until final termination thereof, and will not in the meantime dispose of any portion of his property not exempt from execution. In default of entering into such undertaking, he may be committed to prison as for contempt.
Examination of debtor of judgment debtor, and so forth.
SEC. 476. Examination of debtor of judgment debtor, and so forth. — After the return of an execution against the property of a judgment debtor, or of one of the several debtors in the same judgment, unsatisfied in whole or in part, and upon proof, in writing, and by affidavit or otherwise, to the satisfaction of the judge, that a person or corporation has property of such judgment debtor, or is indebted to him, the judge may, by an order, require such person or corporation, or any officer or member of the corporation, to appear at a specified time and place, within the province in which such person or corporation is served with the order, and answer concerning the same; the service of the order shall bind the property in the possession or under the control of such person or corporation, from the time of service; and the person or corporation so served with the order shall be liable to the judgment creditor for all property, money, and credits in his hands belonging to the judgment debtor, or due to him from such person or corporation, from the time of service; and the judge may also require notice of such proceedings to be given to any party to the action, in such manner as may seem to him proper.
Reference by a judge.
SEC. 477. Reference by a judge. — The judge may, in his discretion, order a reference to a referee agreed upon or appointed by him to report the evidence of the facts.
Proceedings to compel attendance.
SEC. 478. Proceedings to compel attendance. — A party or witness may be compelled by an order of the judge, or a subpoena, to attend before a judge or referee to testify. If a person, party, or witness disobeys an order of the judge, court, or referee duly served, he may be punished as for contempt; and such referee may, at his discretion, report the case to the court or judge, and such court or judge may punish for contempt the person or party or witness so disobeying.
Proceedings may be continued.
SEC. 479. Proceedings may be continued. — The judge or referee acting under the provisions of this chapter, may continue his proceedings from time to time, until they are completed.
Proceedings before a referee.
SEC. 480. Proceedings before a referee. — If the examination is before a referee, it must be taken by the referee in writing and certified to the judge. All examinations and answers before a judge or referee must be on oath. When a corporation answers, the answer must be on the oath of an officer thereof.
Debtor may pay execution against creditor.
SEC. 481. Debtor may pay execution against creditor. — After the issue of an execution against property, a person indebted to the judgment debtor may pay to the officer holding the execution the amount of his debt, or so much thereof as may be necessary to satisfy the execution; the officer's receipt shall be a sufficient discharge for the amount so paid, or directed to be credited by the judgment creditor on the execution.
Judge may order property to be applied on execution.
SEC. 482. Judge may order property to be applied on execution. — The judge may order any property of the judgment debtor, or money due to him, not exempt by law, in the hands either of himself or other person, or of a corporation, to be applied toward the satisfaction of the judgment; but the earnings of the debtor for his personal services at any time within one month preceding the order can not be applied when it is made to appear by the affidavit of the debtor, or otherwise, that such earnings are necessary for the use of a family supported wholly or in part by his labor.
Judge may appoint receiver and prohibit transfers, and so forth.
SEC. 483. Judge may appoint receiver and prohibit transfers, and so forth. — The judge may, by order, appoint the governor, or his deputy, of the proper province, or other suitable person, a receiver of the property of the judgment debtor; and he may also, by order, forbid a transfer or other disposition of, or any interference with, the property of the judgment debtor not exempt by law.
Liability of officer on official bond.
SEC. 484. Liability of officer on official bond. — If the governor, or his deputy, be appointed receiver, he and his sureties shall be liable on his official bond as such receiver; but, if another person be appointed, he shall give an undertaking or bond as in other cases of receivers.
SEC. 485. Proceedings when the judgment debtor has interest in real estate as mortgagee or mortgagor, or otherwise. — If it appears that the judgment debtor has an interest in real estate, in the province in which proceedings are had, as mortgagee or mortgagor, or otherwise, and his interest can be ascertained as between himself and the person holding the legal estate, or the person having a lien on or interest in the same, without controversy as to the interest of such person holding such legal estate or interest therein, or lien on the same, the receiver may be ordered to sell and convey such real estate or the interest of the debtor therein; such sale shall be conducted in all respects in the same manner as is provided for the sale of real estate upon execution; and the proceedings of such sale shall, before the execution of the deed, be approved by the court in which the judgment was rendered.
Proceedings when indebtedness denied or another claims the property.
SEC. 486. Proceedings when indebtedness denied or another claims the property. — If it appears that a person or corporation, alleged to have property of the judgment debtor or to be indebted to him, claims an interest in the property adverse to him or denies the debt, the court may authorize, by an order made to that effect, the judgment creditor to institute an action against such person or corporation for the recovery of such interest or debt, and the court or judge may, by order, forbid a transfer or other disposition of such interest or debt until an action can be commenced and prosecuted to judgment, and may punish disobedience of such order as for contempt. Such order may be modified or vacated by the judge granting the same, or by the court in which the action is brought, at any time, upon such terms as may be just.
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
