Short answer. Yes. Under Article 1261 of the Civil Code, once a consignation is made and the creditor authorizes the debtor to withdraw it, the creditor loses every preference over the consigned thing, and co-debtors, guarantors, and sureties are released from that point forward.
What the law says
If, the consignation having been made, the creditor should authorize the debtor to withdraw the same, he shall lose every preference which he may have over the thing. The co-debtors, guarantors and sureties shall be released.
Civil Code, Article 1261 — Effect of Withdrawal Authorized by the Creditor. Read the full provision →
What consignation means and why it matters
Consignation is the legal process of depositing payment with the court when the creditor refuses to accept it or cannot be located. Once properly made, consignation extinguishes the obligation and puts the debtor in a protected legal position — the debtor has tendered payment, the debt is satisfied, and any delay is the creditor's problem, not the debtor's. But Article 1261 addresses a specific scenario that can arise after a valid consignation: the creditor authorizes the debtor to take the money back.
What happens when the creditor authorizes withdrawal
The moment the creditor says "you may take back what you consigned," two consequences follow by operation of law. First, the creditor loses every preference over the consigned thing — any priority claim, pledge, or security interest tied to that payment disappears. The creditor cannot subsequently claim that the preference survived. Second, and directly relevant to your question, co-debtors, guarantors and sureties are released. They are freed from the accessory obligations they undertook precisely because the debtor's obligation has now been extinguished through consignation, and the creditor's decision to allow withdrawal confirms that finality.
Why the release is permanent
The release under Article 1261 is not conditional or revocable. The creditor authorized the withdrawal — that act carries legal consequences the creditor cannot undo by later changing their mind. The guarantor and co-debtors who signed on to the original debt are not parties to whatever arrangement the creditor and debtor reached about the withdrawn consignation. Their release is the law's recognition that they should not be held to an obligation that the creditor effectively restructured without them. Once released, they are out.
Practical implications
If you were the debtor who consigned and then withdrew with the creditor's permission, the key document is the creditor's authorization — written permission or a court order reflecting that consent. This authorization is what triggers the co-debtors' and guarantors' release. Guarantors and co-debtors who want to assert this release should obtain a copy of that authorization and raise it as a complete defense if the creditor later attempts to collect from them. A new obligation binding those same parties would require a new agreement signed by them — their automatic release under Article 1261 cannot be undone unilaterally.