When a creditor whose claims is not among those mentioned in Article 155 obtains a judgment in his favor, and he has reasonable grounds to believe that the family home is actually worth more than the maximum amount fixed in Article 157, he may apply to the court which rendered the judgment for an order directing the sale of the property under execution. The court shall so order if it finds that the actual value of the family home exceeds the maximum amount allowed by law as of the time of its constitution. If the increased actual value exceeds the maximum allowed in Article 157 and results from subsequent voluntary improvements introduced by the person or persons constituting the family home, by the owner or owners of the property, or by any of the beneficiaries, the same rule and procedure shall apply.
At the execution sale, no bid below the value allowed for a family home shall be considered. The proceeds shall be applied first to the amount mentioned in Article 157, and then to the liabilities under the judgment and the costs. The excess, if any, shall be delivered to the judgment debtor. (247a, 248a)
Requisites for creditor to avail of the right under Article 160
1. He must be a judgment creditor;
2. His claim is not among those excepted under Article155, and
3. He has reasonable grounds to believe that the family home is worth more than the maximum amount fixed in Article 157
Procedure to avail of right under Article 160
1. The creditor must file a motion in the court proceeding where he obtained a favorable for a writ of execution against the family home.
2. There will be a hearing on the motion where the creditor must prove that the actual value of the family home exceeds the maximum amount fixed by the FC either at the time of its constitution or as a result of improvements introduced thereafter its constitution.
3. If the creditor proves that the actual value exceeds the maximum amount the court will order its sale in execution.
4. If the family home is sold for more than the value allowed, the proceeds shall be applied as follows: a. First, the obligation enumerated in Article 155 must be paid b. Then the judgment in favor of the creditor will be paid, plus all the costs of execution c. The excess, if any, shall be delivered.
Judgement Creditor
A party to which a debt is owned that has proved the debt in a legal proceeding and entitled to use judicial process to collect the debt.