Fully Paid Your Car Loan? Here’s How to Cancel Your Chattel Mortgage in the Philippines (2026 Guide)

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Finishing a 3- or 5-year car loan is a major win. However, many owners forget that the bank still technically has a "lien" on the vehicle until the Chattel Mortgage is officially cancelled. Without a "Clean" CR, you cannot sell the car or transfer ownership. The Step-by-Step Process: Claim your Documents from the Bank: Once your final payment is cleared, contact your bank’s loan department. They will provide a "Release of Chattel Mortgage" (or Deed of Release), the original CR, and the original Official Receipt (OR). Visit the Registry of Deeds (RD): Go to the RD branch where the mortgage was originally registered (this is usually indicated on your CR). You will need to pay a cancellation fee. They will stamp or provide an annotation that the mortgage is now cancelled. LTO Annotation Removal: Take your annotated documents from the RD to the LTO District Office where your car is registered. You will need: Original CR and OR Release of Chattel Mortgage  V...
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WAYS TO SETTLE AN ESTATE

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There are three ways to settle an estate here in the Philippines. They are via the Extra Judicial Settlement, the Affidavit of Self-Adjudication, or through the Judicial Settlement of Estate.


Extra Judicial Settlement of Estate

It is the option to use when the following scenarios are present:

1. There is no last will and testament left by the decedent (owner of the estate who passed away)

2. There are several heirs and they agree to the division agreement.

3. There is  no debt left behind or has been fully paid.

For those who want to settle their estate via the Extra Judicial Settlement, please be advised that the ongoing Estate Tax Amnesty will be expiring on June 14, 2023. The amnesty is applicable for those who passed year 2017 below.  It would be a great help because you won't be required to pay interest and surcharges. Estate tax under the amnesty would be computed straight 6% of the market value of the estate at the time of death of the owner. 

For those who passed 2018 onward, estate tax computation would be based on TRAIN LAW.

Affidavit of Self-Adjudication

It is to be used when there is only one sole heir, there is no debt left behind. The sole heir will execute an affidavit,  adjudicating the whole estate to himself/herself.

Judicial Settlement of Estate

However, when heirs do not agree on how the estate will be settled, the Judicial Settlement is the  option to use. This needs court proceedings, hence services of a lawyer is needed. This option takes longer to process and costly.


Finally, it would be very convenient if relationships with co-heirs are harmonious and pleasant. This way, it would be easy to come into agreement on how the estate will be divided among heirs. 


Thank you and God bless!


Please follow or comment below.  You can also reach me at my facebook  page,
Pamanafromancestors or email at anchiebalita@gmail.com.

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