Text of the provision
Art. 2245. Credits of any other kind or class, or by any other right or title not comprised in the four preceding articles, shall enjoy no preference.
(1925)
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
Credits of any other kind or class, or by any other right or title not enumerated, enjoy no preference.
This provision closes out the enumeration of preferred credits by creating a catch-all category for everything left over. Credits that fall here are often called common or ordinary credits, and their defining feature is that they compete on equal footing with each other rather than jumping ahead of other creditors. Whether a particular debt owed by the insolvent falls within one of the preceding, preferred categories or lands in this residual class can make a significant practical difference in how much, if anything, a given creditor ultimately recovers.
Questions about this provision
- Once the preferred creditors are satisfied, how are the ordinary unsecured creditors paid out of what's left?
- Several of my debtor's creditors have no special preference at all — how are they paid once all preferred creditors have been satisfied?
- My loan isn't secured or specially privileged - where does it stand against the debtor's other creditors?
Related provisions
- Article 2244 — Order of Preference on Other Property.
- Article 2246 — Satisfying Preferred Credits on Specific Movables.
Cases interpreting this article
- Authorities on this article will be added here as each is verified against primary sources.