Art. 1295.

The insolvency of the new debtor, who has been proposed by the original debtor and
accepted by the creditor, shall not revive the action of the latter against the original obligor,
except when said insolvency was already existing and of public knowledge, or known to the
debtor, when he delegated his debt.
• (1) Effect of Insolvency by New Debtor in Delegacion
 (a) This refers to delegacion.
 (b) Note that the Article deals only with insolvency, and not with other causes of non-
fulfillment. (In said other causes, the old debtor is not liable.)

Requisites to Hold Old Debtor Liable

 (a) The insolvency was already existing and of PUBLIC KNOWLEDGE at the time of
delegation;
 (b) OR the insolvency was already existing and KNOWN TO THE DEBTOR at the time
of delegation.
 (Note that if the insolvency occurred only AFTER the delegation, the old debtor is not
liable.)
(4) When Article Does Not Apply
• Does NOT apply if there really was NO EXTINCTIVE NOVATION, such as:
 (a) When the third person was only an agent, messenger, or employee of the debtor.
 (b) When the third person acted only as guarantor or surety.
 (c) When the new debtor merely agreed to make himself solidarily liable for the
obligation.
 (d) When the new debtor merely agreed to make himself jointly or partly responsible for
the obligation. (Here the delegacion is merely with reference to the joint or proportionate
share.)