Practice question
A creditor accepted a qualifying guarantor without requiring any particular named person. That guarantor later becomes insolvent. The debtor argues the creditor must keep the insolvent guarantor forever. Under Article2057, which is correct?
- The creditor may demand another guarantor with the required qualifications
- The creditor must always accept insolvency without replacement
- The debt automatically disappears
- The creditor automatically becomes owner of the debtor’s home
- Only the insolvent guarantor may decide whether replacement is allowed
Legal references
- Civil Code RA386: https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html Articles1236–1237,2048,2050–2051,2055–2057.
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