Create your Chattel Mortgage for Payment of Loan in minutes.



Most documents normally involve at least 2 persons and, for different reasons, the person drafting the document would want the terms to benefit one person more over the other. With our Quick-Draft feature, you can easily do this. As you answer the questions, we automatically pre-select the answer that most benefits the person you prefer. This way, you can be sure that your document benefits your preferred person more over the other. You can still change the pre-selected answer if you prefer.

Step-by-step Assistance

Click the "Begin Here" button at the top of this page to start creating your document.

Answer a series of questions to create your document and then download in Word format.

Just look for the following icons as you answer the Q&A to know
more about the question and our suggested answer if you're feeling stuck.

What is this?

Click this icon for helpful information about the question

Suggested Answer

Click this icon to know what is the recommended answer based on similar contracts and industry practice

Things you need to know about Chattel Mortgage for Payment of Loan.

1. What is a Chattel Mortgage?

A Chattel Mortgage is a contract where movable property (i.e. a car) is put up as security by the debtor (the “mortgagor”) in the creditor’s (the “mortgagee”) favor for a loan or any other principal obligation. If the debtor fails to pay the loan or fulfill the principal obligation the creditor may foreclose the mortgage and sell the movable property on public auction. The proceeds of the sale will then be used to pay the debt.

An obligation secured by a Chattel Mortgage is called a secured debt. On the other hand an obligation unsecured by any collateral is called an unsecured debt.

2. When do you need a Chattel Mortgage?

A Chattel Mortgage is often used in transactions involving money such as lending & borrowing of money. The lender will be more willing to lend money if the debt is secured by a mortgage which the lender can look to for recovery if the debtor fails to pay the loan.

3. How can a Chattel Mortgage protect you?

A Chattel Mortgage protects the lender by giving him collaterals that he can foreclose and sell to satisfy the loan if the borrower fails to pay. If the borrower defaults the lender can sell the collateral on public auction and apply the proceeds to the loan. In certain cases, if the proceeds from the public auction is insufficient to fully pay the loan, the lender can still go after the borrower for any deficiency.

For the borrower a Chattel Mortgage makes it easier to borrow money because lenders will be more willing to lend money if they know they are secured by collaterals. Thus, borrowers have easier access to financing.

4. How is a Chattel Mortgage different from a Real Estate Mortgage?

Both documents serve the same purpose of placing a mortgage on the property. However, a Chattel Mortgage is used when the security involves movable property while a Real Estate Mortgage is used for immovable property.

5. What information do you need to create a Chattel Mortgage?

To create your Chattel Mortgage you’ll need the following minimum information:

  1. The type of mortgagor (i.e. individual or business) as well as name and details (i.e. nationality and address)
  2. The type of mortgagee (i.e. individual or business) as well as name and details (i.e. nationality and address)
  3. Brief description of the property being mortgaged (i.e. type of property)
  4. Brief description of the obligation being secured (i.e. amount of the loan)

6. How much is the document?

The document costs PhP 450 for a one-time purchase.

You can also avail of Premium subscription at PhP 1,000 and get (a) unlimited use of our growing library of documents, from affidavits to contracts; and (b) unlimited use of our “Ask an Attorney” service which lets you consult an expert lawyer anytime for any legal concern you have.

Related Documents.

Activities that involve a Chattel Mortgage for Payment of Loan sometimes use the following documents. You may be interested in them:

Document Name