Short answer. No — not until the debt is liquidated. Article 2053 of the Civil Code allows a guaranty to cover future debts whose amount is not yet known, but the statute is explicit: there can be no claim against the guarantor until the debt is liquidated. The creditor must first fix the amount.
What the law says
there can be no claim against the guarantor until the debt is liquidated
Civil Code, Article 2053 — Guaranty of Future Debts. Read the full provision →
What the Civil Code says about future-debt guaranties
Article 2053 of the Civil Code permits a guaranty to be given even before the loan amount is known: "A guaranty may also be given as security for future debts, the amount of which is not yet known; there can be no claim against the guarantor until the debt is liquidated. A conditional obligation may also be secured." The rule has two parts. The first part makes the guaranty valid from the start — you are bound even though the figure was not set when you signed. The second part protects you: the creditor's right to collect from you is suspended until the debt is liquidated, meaning computed and fixed.
What 'liquidated' means in practice
A debt is liquidated when its amount has been determined — either by the contract terms, by the creditor's computation under a loan agreement, or by a court. In a straightforward loan, liquidation usually happens when the creditor issues a demand letter that itemizes principal, interest, and penalties under the loan documents. Until that figure is established and communicated, the guaranty is live but the claim against you is premature. If the creditor sues you before the debt is liquidated, you have a statutory basis to challenge the timeliness of the action.
The default changes things — but not everything
The debtor's default triggers the creditor's right to demand payment from the debtor and to begin the process of computing what is owed. Default alone does not automatically liquidate the debt or entitle the creditor to collect from the guarantor on the spot. The creditor still needs to establish the total amount due. Once that figure is settled, your liability as guarantor is limited to the amount of the principal obligation — guaranty cannot exceed what the debtor owes, and any stipulation that makes it more burdensome is valid only up to the amount of the debt.
What you should do now
If the creditor is already demanding payment from you before the amount is fixed, ask them to produce the full accounting — the exact principal, the interest computation, and any fees claimed under the loan documents. You are entitled to see this because your liability tracks the liquidated debt. You also retain the right, as guarantor, to require the creditor to proceed against the debtor's own assets first before coming after yours, unless you waived that benefit of excussion in writing when you signed the guaranty. Review your guaranty agreement carefully, ideally with counsel, before making any payment.
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.
- Mario C. Tan and Erlinda S. Tan vs. United Coconut Planters Bank, G.R. No. 213156, July 29, 2019 — read the decision on LawPhil →
- Mariano Lim vs Security Bank Corporation, G.R. No. 188539, March 12, 2014 — read the decision on LawPhil →
- Philippine Charity Sweepstakes Office (PCSO) vs. New Dagupan Metro Gas Corporation, et al, G.R. No. 173171, July 11, 2012 — read the decision on LawPhil →
- Bank of Commerce and Stephen Z. Taala vs. Spouses Andres and Eliza Flores, G.R. No. 174006, December 8, 2010 — read the decision on LawPhil →