Where the debtor has various debts of the same kind in favor of the same creditor and on the due date the debtor does not have sufficient funds to cover all the debts, the debtor may avail of

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Application of payment allows the debtor to specify which debt the payment is to be applied to when they cannot cover all debts. This helps manage multiple debts of the same kind with the same creditor when funds are insufficient.

Where the Debtor Has Various Debts of the Same Kind