Short answer. Yes, partially. Under Article 2078 of the Civil Code, when a creditor releases one guarantor's share without the others' consent, the remaining guarantors benefit from that release to the extent of the released guarantor's share. You are not fully released, but your total exposure is reduced by that portion.
What the law says
A release made by the creditor in favor of one of the guarantors, without the consent of the others, benefits all to the extent of the share of the guarantor to whom it has been granted.
Civil Code, Article 2078 — Release of One Guarantor. Read the full provision →
What Article 2078 actually says
When multiple guarantors each back the same debt, each is responsible for a share of the guarantee. If the creditor decides to release one guarantor — giving that person a free pass on their portion — without asking the other guarantors first, Article 2078 steps in. The remaining guarantors benefit from that release to the extent of the share of the released guarantor. The creditor cannot collect the full original amount from the remaining guarantors as if the released guarantor never existed; the released share is simply gone.
An example to make it concrete
Say the debt is ₱900,000 and there are three guarantors, each responsible for ₱300,000. The creditor releases Guarantor A from his ₱300,000 share. Under Article 2078, Guarantors B and C benefit from that release: they are now collectively exposed to ₱600,000 — not ₱900,000. The creditor forfeited the released share and cannot reallocate it to the remaining guarantors simply because the release was given unilaterally. The rule protects co-guarantors from bearing the weight of a co-guarantor's release that they never consented to.
Why this is different from a full release
Article 2078 does not release the remaining guarantors entirely — it reduces their exposure. The remaining guarantors continue to be liable for their own shares and the debt that was not covered by the released share. If the remaining guarantors want a full release, they would need their own release from the creditor, or the underlying debt must be extinguished. What Article 2078 prevents is the creditor using the release of one guarantor to effectively increase the other guarantors' burden without their consent.
What to do if you are in this situation
If you are a co-guarantor and the creditor is now trying to collect the full original debt from you after releasing a co-guarantor, raise Article 2078 as a defense. The key facts to establish are: that there were multiple guarantors each liable for a share; that the creditor released one specific guarantor; and the value of that released share. Once those are established, your maximum exposure is reduced by the released share. Gather any documentation showing the release — a letter, a waiver, a court filing — and present it as the basis for reducing the creditor's claim against you.
Cases citing this provision
These Supreme Court decisions cite the provision above. We list them so you can read them yourself; the summaries of what each decided are not ours to give.
- Paulino M. Ejercito, et al. vs. Oriental Assurance Corporation, G.R. No. 192099, July 8, 2015 — read the decision on LawPhil →
- Autocorp Group, et al. vs. Intra Strata Assurance Corp, et al, G.R. No. 166662, June 27, 2008 — read the decision on LawPhil →