Practice question
A creditor enforces a claim against an independent surety solidarily liable with a rehabilitation debtor. The surety invokes the debtor’s stay as an automatic bar. No special fact changes the statutory setting. Which is best?
- Every surety automatically receives the debtor’s stay
- Section 18(c) excepts enforcement against sureties and other solidarily liable persons; the debtor’s stay is not an automatic shield
- The surety’s obligation automatically disappears
- All nondebtor property becomes estate property
- Only the surety may decide the stay’s scope
Legal references
- https://lawphil.net/statutes/repacts/ra2010/ra_10142_2010.html — RA 10142, sections 4(d) and 16–18
Answer this question in flashcards to review your response and continue practicing.