Philippine Bar review · Question

Practice question: Effect of Levy on Third Persons

Multiple Choice Medium

Practice question

A valid prior encumbrance exists before levy. The judgment creditor says levy automatically erases it and creates an unburdened title greater than the obligor’s interest. Which is best?
  1. Section12 expressly subjects the levy lien to existing liens and encumbrances
  2. Every levy eliminates all earlier interests
  3. The sheriff may privately cancel prior rights
  4. The creditor always acquires ownership immediately upon levy
  5. Only the debtor’s verbal preference controls

Legal references

  • Rule39 Section12: https://lawphil.net/courts/rules/rc_1-71_civil.html

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