d. Effect of Levy on Third Persons

Garnishment of debts and credits

GARNISHMENT is an act of appropriation by the court when the property of a debtor is in the hands of a third person. It is a species of attachment for reaching any property or credits pertaining or payable to a judgment debtor.

Note: Garnishment is proper only when the judgment to be enforced is one for payment of a SUM OF MONEY. It cannot be employed to implement a special judgment such as that rendered in a special civil action for mandamus. (National Home Mortgage vs. Alpajaro, G.R. No. 166508, 2009)

The sheriff may levy on debts due to the debtor, or other credits, including bank deposits, financial interests, royalties, commissions and other personal property, not capable of manual delivery in the possession or control of 3rd parties. Notice must be served to the 3rd party.

Note: The unused balance of an overdraft account is not a credit subject to garnishment. (Feria and Noche, Civil Procedure Annotated, 2013 ed., vol. 2, p.181)

The garnishee or the 3rd person who is in possession of the property of the judgment debtor is deemed a forced intervenor.

EFFECT OF LEVY ON THIRD PERSONS

A levy creates a lien in favor of the judgment obligee over the right, title and interest of the judgment obligor in such property at the time of the levy, subject to liens and encumbrances then existing.

Nature, Purpose, and Jurisdiction

COMPARED WITH GARNISHMENT AND LEVY ON EXECUTION