Short answer. Yes. Under Article 2076 of the Civil Code, the obligation of the guarantor is extinguished at the same time as that of the debtor, and for the same causes as all other obligations. Full payment of the main debt ends your liability as guarantor automatically — no separate release document is required by law.
What the law says
The obligation of the guarantor is extinguished at the same time as that of the debtor, and for the same causes as all other obligations.
Civil Code, Article 2076 — Extinguishment of the Guaranty. Read the full provision →
The rule: guaranty follows the main debt
A guaranty is an accessory contract — it exists to secure another obligation, and it cannot stand on its own once that obligation is gone. Article 2076 of the Civil Code states the principle directly: "The obligation of the guarantor is extinguished at the same time as that of the debtor, and for the same causes as all other obligations." When the debtor pays the creditor in full, the debt is extinguished by payment, and your guaranty is extinguished with it — automatically and simultaneously. The creditor has no further claim against you.
The same causes that end any obligation end the guaranty
Article 2076 extends the extinguishment rule beyond mere payment. The guaranty also ends when the principal obligation is extinguished by any of the recognized legal causes: compensation (set-off), novation, remission (condonation), merger, or prescription of the debt. If the creditor granted the debtor a full remission, for example, your guaranty also ends. If the debt is declared void and unenforceable, there is nothing for the guaranty to secure. The guaranty tracks the fate of the main obligation in all these scenarios.
What can still go wrong after the debt is paid
Even when the extinguishment is legally automatic, practical problems arise. A creditor may fail to update its records, and collection calls — or even a lawsuit — may continue after the debt is fully settled. Get written proof of full payment: an official receipt from the creditor, and if possible a written acknowledgment that the debt is settled and the guaranty released. If you signed a surety agreement rather than a simple guaranty, the same principle applies, but the document itself may contain obligations that survive the principal debt — read it carefully.
Partial payment does not extinguish the guaranty
The extinguishment in Article 2076 tracks the extent of the payment. If the debtor has paid only part of the debt, the guaranty remains alive for the unpaid balance. You are not released proportionally just because a portion was paid — you remain liable for whatever remains outstanding, up to the limit of your guaranty. Full extinction of the debt requires full payment or another complete extinguishing event. Partial settlement reduces the exposure but does not end your obligation as guarantor.
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.
- Central Visayas Finance Corporation vs. Sps. Eliezer S. Adlawan and Leila Adlawan, et al, G.R. No. 212674, March 25, 2019 — read the decision on LawPhil →