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Demand letter in the Philippines — what it does and what to put in it
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Short answer. A demand letter is a written request to pay or perform by a set date. Under the Civil Code it can put the other side in delay and it interrupts the time limit for going to court. Keep proof that it was received. Under Article 1169 some obligations need no demand, but a letter is still your record.
Updated: · Next check 2027-02-02
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Keep a copy and proof it was received.
Stay polite: the letter may end up in front of a judge.
Deadlines
The rules, with the source
| What | Deadline | Source |
|---|---|---|
| Why a demand matters | Delay usually starts when the creditor demands, in or out of court | Civil Code, Art. 1169 |
| When no demand is needed | When the obligation or the law says so, when the time was a controlling motive of the contract, or when a demand would be useless | Civil Code, Art. 1169 |
| Time limit | A written demand interrupts the running of the time limit | Civil Code, Art. 1155 |
| Written contract | 10 years from when the right of action accrues | Civil Code, Art. 1144 |
| Oral contract | 6 years from when the right of action accrues | Civil Code, Art. 1145 |
| Barangay first | For two individuals: if the dispute is within the lupon's authority, you need its certification before you file in court. Individuals in different cities or municipalities are generally outside it, unless the barangays adjoin and both agree | RA 7160, Secs. 408, 410 and 412 |
| Small claims | Money claims of ₱1 million or less, on Form 1-SCC | Supreme Court, Form 1-B-SCC |
Checked on 1 November 2026 on lawphil.net and oca.judiciary.gov.ph. Section 408 lists more exceptions to the barangay step: read it if yours is unusual. We list no interest rate.
What does not exist
Be careful with these.
- “You always need a demand first”: Article 1169 lists cases where no demand is needed.
- “You can always go straight to court”: If the lupon has authority, Section 412 requires the barangay step first.
Step by step
What to do, in order
1
Check what is owed
Amount, what it is for, and your contract or messages.
2
Name the parties
Full names and addresses, yours and theirs.
3
State the facts
What was agreed, when it was due, what was paid.
4
Give a date
What you ask for and by when.
5
Send it with proof
Keep a copy and proof it was received.
6
Choose the next step
Barangay first if it applies, then small claims or a lawyer.
Questions
Is a demand letter required before suing?
Often it is what puts the other side in delay. Article 1169 lists the cases where no demand is needed.
Does it stop the time limit?
A written extrajudicial demand interrupts prescription under Article 1155.
Do I go to the barangay first?
If you are both individuals living in the same city or municipality, usually yes. Section 408 lists the exceptions.
Can I add interest?
Check your contract first. We do not state a rate here.
What happens after the letter?
If nothing changes, the barangay step if it applies, then court. Money claims up to ₱1 million can use small claims.
Official sources
Other documents
Keep the papers in one place
Letters, receipts and notices in one folder you can share with family or a lawyer. The templates and the editor are free; Layers is free for up to 20 people.
This is a sample, not legal advice. The court decides.