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Understanding Subrogation in Civil Law

The document explains conventional subrogation in the Civil Code, where a third party who pays another's debt is subrogated in the rights of the original creditor. It discusses the differences between assignment of rights and subrogation, and the effects of subrogation such as transferring the credit with all its guarantees and releasing the original creditor. It also covers partial subrogation where a third party pays only part of the debt.

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9 views3 pages

Understanding Subrogation in Civil Law

The document explains conventional subrogation in the Civil Code, where a third party who pays another's debt is subrogated in the rights of the original creditor. It discusses the differences between assignment of rights and subrogation, and the effects of subrogation such as transferring the credit with all its guarantees and releasing the original creditor. It also covers partial subrogation where a third party pays only part of the debt.

Translated by

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© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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CONSECRATION OF SUBROGATION

CONVENTIONAL IN THE CIVIL CODE

ARTICLE 2434. Legal subrogation is verified by


ministry of the law, without the need for any declaration of
the interested parties.

ARTICLE 2435. There is conventional subrogation when the


creditor receives payment from a person other than the debtor and
subrogates the one who paid in rights, privileges, actions
the mortgages that I have against the debtor. This subrogation
it must be express, concerning an overdue debt and
to be done at the same time as the payment.

DIFFERENCES BETWEEN THE ASSIGNMENT OF RIGHTS AND THE


Subrogation

1.- The transfer of rights is necessarily a


contract. Subrogation no, except in cases of
conventional subrogation.

2.-Therefore, in the assignment of rights of the creditor


always voluntarily transfers its credit to the assignee,
while in legal subrogation the creditor is seen
displaced, even against his will, from the credit, to the
to be uninterested in the payment received.

In the assignment of rights, there is not necessarily


a payment. In subrogation, a payment is necessarily involved.

4.-It follows that in the assignment of rights there is


you can subject the payment of the price to a suspensive condition. In
the subrogation must be made the payment, as it does not exist
as long as there is not; the payment 'creates' the subrogation.
5.- The assignment of rights in an operation of
speculation; the assignee may collect the entirety of
credit even if a smaller amount had been paid
for the; the third substitute can only obtain the amount
of the payment made and this is a recognized effect
generally by the treatises

6.- The assignment of credits imposes compliance with the


form and the advertising actions of notification to the
debtor and the certain date for it to take effect. The
subrogation is not subject to such requirements.

EFFECTS OF SUBROGATION

1.-Transfer the credit from the original creditor to the third party
solvents.
2.-It transfers it with all its guarantees, defects and
limitations because it is the same legal relationship.
3.-Turns off and disinterests the original creditor, even against
his will, upon settling his credit.

Utility. The original creditor who receives the payment of the debt
he seems disinterested in the satisfaction of the credit and
replaced by payment. A credit has been resolved for you that
Perhaps the debtor could not afford it at the moment.
For the debtor, does it perhaps mean the elimination of a
debtor privileged by another more lenient. In any case,
it does not worsen your situation. For the third party that pays, it means the
advantage of disconnecting a creditor who could decrease his
payment guarantee.
PARTIAL SUBROGATION.

This type of subrogation is possible if the creditor


consent to her and to divide the payment of the debt. Also
it is possible if the debt is payable in pensions and the
someone makes the payment for one of them or for any of them, or,
finally, if it is a co-obligor who pays and replaces the
creditor, as it will only be repeated against their co-debtors, for
the reimbursement of this part of the debt. The debt
paid by a joint guarantor has the effect of
characteristic that the solvent only substitutes the creditor in
the shares of the credit had against others
co-obligated.

The corresponding share of the payer that is paid remains


extinguished by such payment and regarding it there is no effect
subrogation since he is paying for himself. This is
explain in more detail when dealing with obligations
solidary in indivisibles, partial surrogacy is
prohibited for a third party attempting to pay part of a
indivisible obligation. If several third parties subrogate themselves into
various parts of the same debt and did not reach the
assets of the debtor, the subrogates will collect pro rata.

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