Quick answer

In the Philippines, an action to collect a debt evidenced by a written contract—ordinarily including a signed promissory note—must generally be filed within 10 years from the date the right to sue accrues. An action based on an oral loan generally prescribes in six years. A mortgage action also prescribes in 10 years.

The crucial date is not always the date the money was borrowed or the note was signed. Depending on the document, prescription may begin at maturity, upon an unpaid installment, upon valid acceleration of the entire balance, or when a required demand is made. A note payable on demand or without a maturity date may be due immediately upon delivery.

Before declaring a debt collectible or prescribed, examine the note, payment history, demand letters, extensions, restructuring agreements, acknowledgments, and any mortgage or court judgment. The governing provisions are Articles 1139 to 1155 of the Civil Code of the Philippines.

General prescriptive periods

Basis of the claim	General period	Starting point
Written contract or signed promissory note	10 years	When the right of action accrues
Oral contract or oral loan	6 years	When the right of action accrues
Mortgage action	10 years	When foreclosure may legally be brought
Final judgment	10 years	From finality of the judgment
Obligation created by law	10 years	When the right of action accrues
Quasi-contract	6 years	When the right of action accrues

These periods may be displaced by a special law or a special procedural deadline. Claims against a deceased debtor’s estate, rehabilitation or insolvency proceedings, checks subject to criminal prosecution, government claims, and regulated consumer-credit transactions may require separate analysis.

When does the 10-year period begin?

Note with a fixed maturity date

If the note states a definite due date, the creditor ordinarily cannot sue before that date. Prescription generally begins when the obligation becomes due and the debtor is in default.

Under Article 1169 of the Civil Code, demand is generally necessary to place a debtor in delay. Demand is unnecessary when:

The law or contract expressly says so;
The contract makes timely performance a controlling reason for the agreement;
Demand would be useless because performance has become impossible through the debtor’s act; or
The debtor validly waived demand.

A clause stating that the obligation becomes due “without need of demand or notice” can therefore make prescription begin upon the specified default. In a 2025 decision involving a promissory note, the Supreme Court enforced an express waiver of demand and held that missed amortizations could make the balance immediately due under the note’s acceleration clause. See Planters Development Bank v. Spouses Delos Santos, G.R. No. 252841.

If demand is legally required, the period may run from the effective demand. The Supreme Court explains the relationship among maturity, demand, default, and prescription in University of Mindanao, Inc. v. Bangko Sentral ng Pilipinas.

Note payable in installments

Each missed installment may create a separate cause of action, with its own prescriptive period. Older installments can therefore prescribe while later installments remain actionable.

An acceleration clause may change this result. If the clause makes the entire balance immediately due upon default—or allows the creditor to accelerate and the creditor validly exercises that option—the period for the whole balance may begin earlier. The exact wording matters: “shall become due” and “may, at the creditor’s option, declare due” do not necessarily operate identically.

Note payable on demand or with no maturity date

A demand note should not be treated as indefinitely collectible. The Supreme Court has held that promissory notes with no maturity date were payable on demand, due immediately upon delivery, and subject to prescription from that point. See Schwesinger v. Reich, G.R. No. L-16525.

A creditor should not assume that delaying the first demand also delays prescription indefinitely.

Renewals and extensions

A valid written renewal, restructuring agreement, or extension executed before prescription expires may change the maturity date or create a new enforceable undertaking. Informal assurances such as “babayaran kita soon” may not have the same effect. Examine whether the new document:

Identifies the existing debt;
States the balance;
Fixes new payment terms;
Is signed or otherwise legally attributable to the debtor; and
Was made before or after the original claim prescribed.

What interrupts prescription?

Article 1155 of the Civil Code recognizes three ways to interrupt prescription:

Filing the action in court;
A written extrajudicial demand by the creditor; or
A written acknowledgment of the debt by the debtor.

A valid interruption generally erases the time already elapsed and starts a fresh applicable period. For a written demand, the new period is generally counted from the debtor’s receipt of the demand. Preserve both the demand and reliable proof of delivery or receipt.

Written demand

A useful demand letter should identify:

The creditor and debtor;
The promissory note or transaction;
The unpaid principal, payments credited, and claimed charges;
The applicable maturity or default;
A definite demand for payment; and
The address or method for payment and response.

Send it to the address specified in the contract and, when different, the debtor’s known current address. Keep the registry receipt, return card, courier tracking, delivery certification, email transmission records, and any reply.

An oral demand does not satisfy Article 1155. A demand sent only after prescription has already expired ordinarily does not revive the prescribed action.

Written acknowledgment by the debtor

Not every mention of the loan is an effective acknowledgment. The Supreme Court requires a clear, specific, unequivocal recognition of a presently subsisting debt and of the creditor’s right to enforce it. A statement disputing the balance, denying liability, or merely admitting that a note was once signed may be insufficient.

If prescription has already been completed, a bare acknowledgment is generally not enough; a new and positive promise to pay may be necessary. See Spouses Bautista v. Premiere Development Bank, G.R. No. 201881.

Debtors should obtain advice before signing a balance confirmation, restructuring agreement, waiver, or promise to pay. Creditors should not alter, backdate, or misrepresent documents.

Partial payment

Partial payment alone does not automatically interrupt prescription. Article 1155 requires a written acknowledgment by the debtor. The Supreme Court has held that payment not accompanied by a signed communication acknowledging the debt is generally insufficient for this purpose.

There is a separate rule in Article 1151 for obligations to pay principal with interest or an annuity: prescription runs from the last payment of the annuity or interest. The nature and documentation of the payment must therefore be examined rather than assumed.

Filing in court—and proceedings that may not be enough

A properly filed court action interrupts prescription. But creditors should not rely on a complaint filed in the wrong forum, an abandoned case, or a case later dismissed. The legal effect can depend on why and how the proceeding ended.

An application for extrajudicial foreclosure filed with the sheriff is not an action filed in court for Article 1155. The Supreme Court confirmed this in Spouses Bautista. Creditors with secured loans should obtain advice before choosing collection, judicial foreclosure, or extrajudicial foreclosure because electing one remedy may prevent a separate action that improperly splits the same cause of action.

What happens when the period expires?

Prescription generally bars judicial enforcement of the claim. The debt may remain a natural obligation, but the creditor can no longer compel payment through an ordinary collection action if prescription is properly established.

Under Articles 1423 and 1424 of the Civil Code, a debtor who voluntarily pays a prescribed debt generally cannot recover the payment merely because the creditor’s right to sue had expired.

A completed prescriptive defense may also be renounced by a legally capable person, although a person cannot validly waive in advance the future right to prescribe. This is another reason not to sign a new promise or make a voluntary payment without first checking the documents and dates.

Prescription of a judgment is different

Winning a collection case does not make the judgment enforceable forever.

Under Rule 39, Section 6, a final judgment may generally be enforced by motion within five years from entry. After that, but before the judgment is barred by prescription, it must generally be enforced through an independent action for revival. The Civil Code’s 10-year period for an action upon a judgment runs from the judgment’s finality—not from the end of the initial five-year execution period.

Written demands and acknowledgments that may interrupt prescription of the original contractual debt should not automatically be assumed to extend the period for reviving a judgment.

Where and how may a collection case be filed?

Small claims

Under the 2022 Rules on Expedited Procedures in the First Level Courts, a money claim not exceeding ₱1,000,000, exclusive of interest and costs, may qualify as a small claim when it arises from matters such as a loan, sale, services, lease, or mortgage.

The action is commenced using the official verified Statement of Claim and supporting documents. Lawyers may advise parties before the hearing, but no lawyer may appear for or represent a party at the small-claims hearing unless the lawyer is personally a party. The decision is final, executory, and unappealable, subject only to any extraordinary remedy legally available in exceptional circumstances.

A defendant must generally file the verified small-claims Response within 10 calendar days from receipt of summons. See the Supreme Court’s Rules on Expedited Procedures in the First Level Courts and Small Claims information page.

Claims exceeding the small-claims ceiling

Under Republic Act No. 11576:

First-level courts generally have exclusive original jurisdiction over civil money claims not exceeding ₱2,000,000, exclusive of interest, damages, attorney’s fees, litigation expenses, and costs for jurisdictional purposes.
Claims exceeding ₱2,000,000 generally fall within the original jurisdiction of the Regional Trial Court.

The nature of the action, parties, property involved, and relief requested can affect jurisdiction. Interest and other amounts excluded when determining jurisdiction may still affect filing fees.

For an ordinary civil complaint, the defendant generally has 30 calendar days after service of summons to answer, unless the court or a special rule fixes another period. The current provisions appear in the 2019 Amendments to the Rules of Civil Procedure.

File through the proper Office of the Clerk of Court and follow its current requirements for initiatory pleadings, electronic copies, fees, and service. Because judiciary e-filing rules continue to be implemented in stages, check the Supreme Court’s current Electronic Filing guidance before filing.

Barangay conciliation

When both parties are individuals actually residing within the same city or municipality, prior barangay conciliation may be a condition before going to court, subject to statutory exceptions. Obtain a Certificate to File Action when required.

One express exception permits direct court filing when the action may otherwise be barred by prescription. Do not allow an expiring limitation period to pass while waiting for a process that the law permits you to bypass. The governing provisions are Sections 408 to 412 of the Local Government Code.

Claim against a deceased debtor

If estate proceedings have begun, the court’s notice to creditors may set a claim-filing period of not less than six months and not more than 12 months from first publication. Missing that probate deadline can bar a money claim even when the ordinary Civil Code period appears unexpired. Secured creditors have special choices under Rule 86.

Evidence to preserve

Whether you are the creditor or debtor, keep:

The original promissory note and every attachment;
The loan, credit, mortgage, or security agreement;
Proof that the money or property was actually delivered;
The complete payment and amortization history;
Receipts, bank statements, deposit slips, transfers, and official account statements;
Written extensions, renewals, restructuring agreements, and waivers;
Demand letters and proof of receipt;
Emails, messages, and letters acknowledging or disputing the debt;
Notices of acceleration, foreclosure, assignment, or transfer to a collector;
Barangay records and the Certificate to File Action;
Court pleadings, orders, judgment, entry of judgment, and execution records; and
Estate, rehabilitation, or insolvency notices.

Do not surrender the original note without a receipt and a clear record of why it was released. Preserve complete electronic conversations, not isolated screenshots that omit dates, participants, or context.

Interest, penalties, and collection charges

Prescription determines whether an action was filed on time; it does not automatically prove the amount claimed.

Conventional interest must generally be expressly stipulated in writing under Article 1956 of the Civil Code. Courts may reduce or strike down interest, penalties, or charges that are excessive or unconscionable. In the absence of an enforceable stipulated rate, the prevailing legal rate for a loan or forbearance of money is currently 6% per year, applied according to the circumstances governing default and judgment. See BSP Circular No. 799.

A creditor should provide a transparent computation showing principal, each payment, interest, penalties, and the date from which each charge is claimed.

Common mistakes

Counting 10 years automatically from the date the note was signed;
Assuming a demand note remains enforceable until the creditor chooses to demand;
Treating an oral demand as an interruption under Article 1155;
Sending the first written demand only after prescription has expired;
Assuming every partial payment restarts the period;
Ignoring installment and acceleration provisions;
Relying on an extrajudicial foreclosure application as a court filing;
Filing in the wrong court or skipping required barangay conciliation;
Suing the wrong person or an incorrect business name;
Failing to preserve proof that a demand was received;
Signing a restructuring agreement or acknowledgment without checking whether the original action had prescribed; and
Ignoring summons because the debtor believes the claim is old.

Prescription should be raised promptly and supported by the relevant dates and documents. A court may also dismiss a claim when the time bar is apparent from the pleadings and governing law.

When legal help is urgent

Seek advice immediately when:

The possible deadline is only weeks or months away;
A demand, acceleration, or foreclosure notice has been received;
Summons or a small-claims form has been served;
The creditor proposes restructuring, acknowledgment, or waiver documents;
The borrower has died or estate proceedings have begun;
The debt is secured by land, a vehicle, shares, or other collateral;
Multiple promissory notes, renewals, or assignments are involved;
The creditor already chose foreclosure and now wants a separate collection suit;
A prior case was dismissed or filed in the wrong forum; or
There are threats, public shaming, unauthorized disclosure of personal information, falsified documents, or disputed signatures.

Persons who qualify may inquire with the Public Attorney’s Office or an Integrated Bar of the Philippines legal-aid office.

Frequently asked questions

Is every promissory note collectible for 10 years from signing?

No. Ten years is the general period for an action on a written contract, but the starting date depends on maturity, demand, default, installments, acceleration, extensions, and the note’s wording.

Does a demand letter always restart the 10-year period?

Only a qualifying written demand made before prescription has completed. The creditor should be able to prove the debtor received it. A late demand generally cannot revive an already prescribed action.

Can repeated written demands restart prescription?

A timely qualifying written demand may start a fresh period, and later timely written demands may do so again. Each demand and its receipt must be proved. Do not rely on this approach when a proper court action can be filed.

Does a partial payment revive the debt?

Not automatically. Partial payment generally must be accompanied by a written acknowledgment attributable to the debtor to interrupt prescription under Article 1155. Payments of stipulated interest may also affect computation under Article 1151.

Can a debtor be imprisoned for failing to pay?

Not solely for an ordinary contractual debt. Article III, Section 20 of the 1987 Constitution prohibits imprisonment for debt. Separate unlawful conduct—such as fraud or an offense involving a check—may carry criminal consequences if all elements of the specific offense are proved.

Does prescription erase the debt completely?

It generally removes the creditor’s legal remedy to compel payment. The obligation may remain a natural obligation, and voluntary payment normally cannot be recovered.

Is a mortgage enforceable after the note has prescribed?

Not necessarily. Both the personal collection action and the mortgage remedy have their own 10-year rules, normally tied to default and accrual. A mortgage does not provide an unlimited collection period.

What if the creditor already has a judgment?

Execution by motion is generally available within five years from entry. After that, an independent action to revive the judgment may be necessary, and the overall 10-year period is counted from finality.

This article provides general Philippine legal information, not advice for a particular debt, document, or case. Prescription is highly fact-dependent. Sources and current procedural thresholds were checked as of August 4, 2026.