Practice question
The proved debt and proper charges total ₱2,000,000. Net proceeds properly applicable from a valid foreclosure total ₱1,300,000. No additional adjustment is disputed. What balance is potentially recoverable from a personally liable debtor?
- ₱700,000.
- ₱2,000,000 without deduction.
- ₱3,300,000.
- ₱1,300,000 as an additional debt.
- Nothing solely because every foreclosure extinguishes all debt.
Legal references
- https://www.lawphil.net/courts/rules/rc_1-71_civil.html — Rules of Court, Rule 68 section 6: deficiency and personal liability.
- https://lawphil.net/judjuris/juri2023/aug2023/gr_259282_2023.html — Spouses Prieto v BPI, GR 259282, August 30 2023, main opinion: proof of obligation and foreclosure proceeds.
- https://www.lawphil.net/judjuris/juri2021/apr2021/gr_203194_2021.html — Asset Pool A v Spouses Berris, GR 203194, April 26 2021, main opinion: deficiency after termination of foreclosure; no splitting of cause of action.
- https://lawphil.net/statutes/repacts/ra1949/ra_386_1949.html — Civil Code, article2085: third-party real security.
Answer this question in flashcards to review your response and continue practicing.