Filing a Case for Bounced Checks Due to a Closed Account in the Philippines

(Everything you need to know, in one place.)

Quick take: When a check bounces because the issuer’s bank account is closed, you typically have two parallel tracks: a criminal case under B.P. Blg. 22 (Bouncing Checks Law) and an optional criminal case for estafa (deceit) under the Revised Penal Code, plus straightforward civil remedies to collect the money. “Closed account” is one of the strongest grounds because the drawer generally knows the account no longer exists.

1) The Legal Theories You Can Use

A. B.P. Blg. 22 (Bouncing Checks Law) — malum prohibitum

Purpose: Punishes the act of making/issuing a check that is later dishonored for insufficient funds/credit or account closed. Intent to defraud is not required.

Elements (simplified):

The accused made/drew/issued a check to apply for account or for value;
At the time of issuance, the accused knew they had no sufficient funds/credit with the drawee bank; and
The check was dishonored upon presentment for insufficiency of funds/credit, or because the account was closed, or it would have been dishonored for those reasons but the drawer, without valid cause, ordered stop-payment.

Key presumptions & timelines:

If the check is presented within 90 days from its date and then dishonored, the law creates a prima facie presumption that the issuer knew of the insufficiency if they fail to pay or make arrangements within five (5) banking days after receiving written notice of dishonor.
“Account closed” is treated as a form of dishonor that strongly supports knowledge (the drawer normally knows the account status). Still, proof of receipt of a written notice of dishonor is crucial if the prosecution wants to rely on the presumption. (Absent the presumption, knowledge can still be proven by other evidence—e.g., the bank record that the account had been closed before issuance, admissions, etc.)

Penalty:

Imprisonment of 30 days to 1 year, or a fine (commonly pegged to the amount of the check, up to statutory limits), or both, at the court’s discretion.
Courts frequently prefer fines (especially with restitution), but imprisonment remains legally possible.

Each check is a separate offense.

B. Estafa (Art. 315(2)(d), Revised Penal Code) — deceit/fraud based

This is separate from B.P. 22. You may pursue both.

When it applies:

The check was used to defraud—i.e., it induced the offended party to part with money/property at the time of the transaction (not merely to pay a pre-existing debt).
There must be deceit and damage.
A check issued only as a guarantee or for an already existing debt generally does not amount to estafa (though it can still be B.P. 22).

Penalty:

Based on amount defrauded (tiered penalties as updated by law). Unlike B.P. 22, intent to defraud is required.

C. Civil Remedies (Collection)

Regardless of filing criminal cases, you may:

File a civil action for collection of sum of money (plus legal interest, damages, and attorney’s fees as warranted).
Use Small Claims if the amount fits the current small-claims threshold (the Supreme Court periodically revises this; check the latest limit in your locality).
The civil action is impliedly instituted with the criminal action unless you reserve it or file it separately (Rule 111).

2) What You Must Prove (Closed Account Scenario)

Documents that matter most:

Original checks (or bank-certified images) and bank return slips/notices bearing the reason “Account Closed” (or equivalent bank stamp/certification).
Written Notice of Dishonor (demand letter) and proof of actual receipt by the issuer (e.g., registry return card signed by the accused, courier proof with signature, personal service with signed acknowledgment).
Proof of consideration/transaction: invoices, delivery receipts, contracts, e-mails, chats—anything showing why you received the check.
Presentment details: deposit slips, stamp dates, or bank certifications showing the check was presented within 90 days of its date (for the B.P. 22 presumption).
If pursuing estafa: evidence that the check induced you to release goods/cash at the time of the deal.

3) Step-by-Step: How to File

Present the check for payment (deposit it).
- Do this within 90 days from the check date (best practice), and keep all bank proof of dishonor.
Send a written notice of dishonor (demand letter).
- State the check details, reason for dishonor (Account Closed), and give the issuer five (5) banking days from receipt to fully pay or make arrangements.
- Use a method that proves actual receipt (registered mail with return card, reputable courier with receiver’s signature, or personal service with signed acknowledgment). Keep the envelopes, tracking, and receipts.
Wait out the 5 banking days (from the date of actual receipt of your written notice).
- If fully paid within this grace period, it undercuts the B.P. 22 presumption (and often ends the dispute).
- Partial payment helps, but full settlement is what usually moots the criminal angle.
Prepare your complaint-affidavit for filing with the Office of the City/Provincial Prosecutor (for B.P. 22 and, if appropriate, estafa). Attach:
- Checks and bank return slips/certifications;
- Demand letter + proof of service/receipt;
- Proof of the transaction/value;
- Your government ID and any supporting records.
- If both parties are natural persons living in the same city/municipality, consider barangay conciliation requirements (see §8) before filing.
Preliminary investigation follows.
- The prosecutor subpoenas the respondent for counter-affidavits and resolves probable cause.
If probable cause is found, an Information is filed in the proper first-level court (MeTC/MTC/MCTC).
- Venue/Jurisdiction: You may file where any element occurred—commonly where the check was issued or delivered, where it was deposited/dishonored, or where the accused received the written notice of dishonor.
Arraignment & trial (or plea-bargaining, restitution, compromise on civil liability).
- Bail is typically available as a matter of right (penalty does not exceed 6 years).
- Courts often encourage restitution; in B.P. 22, many judgments impose fines instead of imprisonment when the amount is paid.

4) Common Defenses You Should Anticipate

No written notice of dishonor actually received. (The prosecution’s presumption under B.P. 22 is weakened without proof of receipt. They can still prove “knowledge” by other means, but many cases fail here.)
Presentment beyond 90 days from the check date. (You can still win, but the statutory presumption won’t apply; the prosecution must prove “knowledge” by independent evidence.)
Check not issued by the accused (forgery, stolen check).
Stop-payment for a valid cause (e.g., fraud by the payee); or failure/illegality of consideration (more relevant to estafa/civil).
Lack of deceit and/or damage (for estafa).
Wrong venue / lack of jurisdiction (e.g., case filed in a place where no element occurred).
Payment (full payment after notice can defeat the presumption; payment before judgment can mitigate penalty or lead to dismissal of the civil aspect).

5) Penalties & What Outcomes Look Like

B.P. 22: Court may impose fine, imprisonment (30 days–1 year), or both; courts frequently choose fines, especially with full restitution.
Estafa: Penalty is tied to the amount defrauded and requires deceit; civil liability for the amount, interest, damages, and fees typically follows.
Civil: Judgment for the face value + legal interest (commonly from demand or filing), and potentially damages/attorney’s fees.

Multiple checks = multiple counts. Probation is typically available (especially for fine-only sentences). Settlement usually does not automatically extinguish criminal liability under B.P. 22, but it can mitigate or lead to fine-only outcomes; it also disposes of the civil aspect when fully paid.

6) Corporate & Partnership Checks

Criminal liability generally falls on the signatory who actually issued the check on behalf of the entity.
The entity can still face civil liability for the obligation.
For post-dated series of checks (e.g., installments), each dishonored check is a separate B.P. 22 count.

7) Practical Timelines & Prescription

Act now. Although B.P. 22 cases are under a special law with a relatively short prescriptive period, the clock is typically interrupted by filing a complaint with the prosecutor or court.
As a rule of thumb, initiate action as soon as the dishonor occurs and after completing the notice-and-5-banking-days step.
Keep all dated proofs (deposit stamps, return slips, mailing receipts, signed acknowledgments).

(Exact prescriptive computations can be technical and fact-specific; if your case is older, get a lawyer to audit the dates.)

8) Barangay Conciliation (Katarungang Pambarangay)

Some BP 22 disputes require prior barangay conciliation before filing, only if:
- Both complainant and respondent are natural persons,
- They reside in the same city/municipality, and
- No statutory exception applies (e.g., one party is a corporation; parties live in different cities/municipalities; urgent inquest; other exceptions).
When required and skipped, cases can be dismissed on that ground—so check this early.

9) Best Practices (Closed Account Cases)

Present within 90 days, then get a bank return slip/certification explicitly stating “Account Closed.”
Send a clear written notice with a 5-banking-day compliance window; prove actual receipt.
Bundle claims: File B.P. 22; consider estafa if deception induced the transaction; pursue civil collection in tandem or separately.
Venue strategy: File where issuance/delivery happened, where the check was deposited/dishonored, or where notice was received.
Keep originals secure; scan everything; maintain a chronology with dates.
Stay open to settlement—restitution often results in fine-only penalties and ends the civil issue.

10) Simple Checklist

Check date and amount
Deposit within 90 days
Obtain bank return slip/“Account Closed” stamp or certification
Prepare and send written notice of dishonor (with check details; give 5 banking days)
Keep proof of actual receipt of the notice
Compile transaction proofs (invoices, DRs, chats, contract)
Assess barangay conciliation requirement (if both are natural persons in the same city/municipality)
Draft complaint-affidavit (B.P. 22; and estafa if applicable)
File with Prosecutor; attend prelim. investigation
Track venue, prescription, and consider civil/small claims alongside

11) Template: Written Notice of Dishonor (for B.P. 22)

[Date]

[Name of Drawer]
[Address]

Subject: Written Notice of Dishonor – Check No. [____], dated [____], Amount [₱____]

Dear [Mr./Ms. Lastname]:

Please be advised that the above check, drawn against [Bank, Branch], has been DISHONORED for the reason: ACCOUNT CLOSED, as per the bank’s return on [date].

In accordance with law, you are hereby given FIVE (5) BANKING DAYS from your receipt of this notice to fully pay the amount of ₱[____] (plus incidental costs, if any) or to make suitable arrangements for payment. Kindly settle at [payment place/method], and notify us immediately.

Failure to do so will constrain us to pursue criminal and civil actions without further notice.

Very truly yours,

[Complainant’s Name]
[Signature / Contact Details]

(Serve via registered mail with return card, reputable courier with signed proof of receipt, or personal service with signed acknowledgment.)

12) Frequently Asked Questions

Q: If the issuer pays after I file the case, is the criminal case automatically dismissed? A: Not automatically. Payment often leads to fine-only penalties and settles the civil aspect, but courts can still proceed with B.P. 22 because it punishes the issuance of a worthless check itself.

Q: Do I need to prove the issuer intended to cheat me for B.P. 22? A: No. That’s for estafa. B.P. 22 focuses on the act of issuing a check later dishonored and on compliance with the notice + 5-banking-day rule.

Q: What if I presented the check after 90 days? A: You can still file, but you lose the statutory presumption of knowledge; you’ll want independent proof (e.g., the account had been closed prior to issuance).

Q: Can I sue in the city where I deposited the check? A: Generally yes—venue is proper where any element occurred (issuance, delivery, deposit/dishonor, or receipt of written notice).

Final Notes & Caution

This guide reflects general rules and common practice. Local prosecutor offices and courts can differ in forms and fine schedules.
For large amounts, complex timelines, or if presentment/notice steps were imperfect, consult counsel to refine your strategy (especially on venue and prescription).

If you want, I can turn this into a fillable complaint-affidavit and a ready-to-print demand letter with your details.