Text of the provision
Art. 2244. With reference to other property, real and personal, of the debtor, the following claims or credits shall be preferred in the order named:
(1) Proper funeral expenses for the debtor, or children under his or her parental authority who have no property of their own, when approved by the court;
(2) Credits for services rendered the insolvent by employees, laborers, or household helpers for one year preceding the commencement of the proceedings in insolvency;
(3) Expenses during the last illness of the debtor or of his or her spouse and children under his or her parental authority, if they have no property of their own;
(4) Compensation due the laborers or their dependents under laws providing for indemnity for damages in cases of labor accident, or illness resulting from the nature of the employment;
(5) Credits and advancements made to the debtor for support of himself or herself, and family, during the last year preceding the insolvency;
(6) Support during the insolvency proceedings, and for three months thereafter;
(7) Fines and civil indemnification arising from a criminal offense;
(8) Legal expenses, and expenses incurred in the administration of the insolvent's estate for the common interest of the creditors, when properly authorized and approved by the court;
(9) Taxes and assessments due the national government, other than those mentioned in articles 2241, No. 1, and 2242, No. 1;
(10) Taxes and assessments due any province, other than those referred to in articles 2241, No. 1, and 2242, No. 1;
(11) Taxes and assessments due any city or municipality, other than those indicated in articles 2241, No. 1, and 2242, No. 1;
(12) Damages for death or personal injuries caused by a quasi-delict;
(13) Gifts due to public and private institutions of charity or beneficence;
(14) Credits which, without special privilege, appear in (a) a public instrument; or (b) in a final judgment, if they have been the subject of litigation. These credits shall have preference among themselves in the order of priority of the dates of the instruments and of the judgments, respectively.
(1924a)
Civil Code of the Philippines, Republic Act No. 386, approved June 18, 1949, effective August 30, 1950. Reproduced in full; verified verbatim against the LawPhil and ChanRobles official-text renderings.
What this article means
With reference to the debtor's other property, real and personal, fourteen classes of claims are preferred in the order named — beginning with funeral expenses, then credits for services during the last illness, wages of household helpers and laborers for the last year, compensation for injuries, legal support, taxes, and various documented or judicially-established credits.
Questions about this provision
- A deceased insolvent had promised a donation to a charitable institution — where does that gift rank among his debts in the insolvency proceedings?
- Are an insolvent debtor's funeral expenses paid ahead of the ordinary creditors?
- Are the debtor's last-illness medical expenses given priority among his debts in insolvency?
- Does the civil indemnity a debtor owes me from a criminal case get priority over his other ordinary debts?
- I advanced money to keep my insolvent brother-in-law and his family afloat during the year before his insolvency proceedings — is that advance a preferred credit?
- I am a creditor administering an insolvent estate — can the approved legal and administrative expenses be paid from the estate before other creditors receive anything?
- I won damages for injuries caused by the debtor's negligence - where do I rank among creditors if he's now insolvent?
- I'm owed compensation for a work accident by a now-insolvent employer - is that treated as a preferred credit?
- My debtor's insolvency proceedings are still ongoing and will take months — is there a provision that his own basic support during that period be paid out of the estate ahead of creditors?
- My loan is set down in a notarized public instrument - does that give it preference over ordinary debts in insolvency?
- The insolvent business owes me wages for the past year - do I get paid before its ordinary creditors?
Related provisions
- Article 2243 — Taxes Come First.
- Article 2245 — Credits Without Preference.
Cases citing this article
- Philippine Deposit Insurance Corporation vs. Bureau of International Revenue, G.R. No. 172892, June 13, 2013 — read the decision on LawPhil →
- Strategic Alliance Development Corporation vs. Radstock Securities Limited and Philippine National Construction corporation, G.R. No. 178158 / G.R. No. 180428, December 4, 2009 — read the decision on LawPhil →
- Abundio Barayoga, et al. vs. Asset Privatization Trust, G.R. No. 160073, October 24, 2005 — read the decision on LawPhil →
Compiled automatically from Supreme Court decisions published on LawPhil that expressly cite this article, most frequently cited first. A listing means the decision cites the provision — it is not a statement that the case is the leading authority, and it does not show whether a ruling has since been modified or abandoned. Always read the decision itself.