How Much Does a Lawyer Charge for a Demand Letter in the Philippines?

How Much Does a Lawyer Charge for a Demand Letter in the Philippines?

Short answer: for a one-off demand letter, expect ₱3,000–₱20,000 with solo or small-firm counsel for straightforward matters, ₱15,000–₱40,000+ for complex or high-stakes disputes, and ₱30,000–₱75,000+ at large or premium firms. Fees rise with urgency, complexity, and any follow-through (calls, negotiations, second letters, filings).

(This is general information, not legal or tax advice. Actual quotes vary by lawyer, location, and scope.)


What you’re paying for

A demand letter isn’t “just a letter.” Your lawyer typically:

  • Reviews your facts and documents
  • Identifies legal bases and remedies
  • Assesses strategy (tone, leverage, next steps if ignored)
  • Drafts on law-firm letterhead, clears it through internal review
  • Plans service (e.g., personal service, courier, or registered mail with proof of delivery)
  • Advises on what to do if there’s no response (e.g., small claims, civil action, BP 22, labor, IP, etc.)

What drives the price

  1. Complexity & stakes – higher amounts, multiple parties, regulated industries, cross-border elements, or sensitive issues cost more.
  2. Time & urgency – rush/expedite requests (same-day or weekend) often add 25%–100%.
  3. Lawyer seniority & firm type – partner review and big-firm processes add to cost.
  4. Location – Metro Manila rates are usually higher than in many provinces.
  5. Deliverables – one letter only vs. letter + follow-up call(s) + negotiation support.
  6. Proof of receipt needed – if future filing (e.g., small claims or BP 22) may require tighter service and documentation.
  7. Language & formatting – translations, exhibits, and special annexes take time.

Common fee structures (Philippine practice)

  • Flat fee (most common for one letter):

    • Simple (e.g., unpaid invoice/loan with clear proof): ₱3,000–₱12,000
    • Moderate (e.g., landlord-tenant, BP 22 notice, employment, consumer): ₱7,500–₱20,000
    • Complex/corporate/IP/defamation/high exposure: ₱15,000–₱40,000+ (Large/premium firms often start ~₱30,000–₱75,000+.)
  • Flat fee + hourly tail: Includes the letter; additional calls/emails/negotiations billed hourly (typical ranges: ₱3,000–₱10,000+/hour depending on seniority/firm).

  • Package tiers:

    • Letter-only (draft + send).
    • Letter + one follow-up (e.g., one call or a reminder note within 14 days).
    • Letter + negotiations (cap of hours).
    • Letter + filing prep if ignored (scoping for small claims/complaint drafting).
  • Retainer clients: If you’re on a monthly retainer, a set number of demand letters may be included or discounted.

  • Contingency or success fee (less common just for a letter): Sometimes a modest flat fee plus a success component (a percentage of amounts actually collected). Must still be reasonable.


What’s usually included (and what’s not)

Often included in a flat fee

  • 30–60 min intake consult and document review (light)
  • One draft + one revision
  • Printing on letterhead and electronic copy (PDF)
  • Sending via one agreed method (e.g., registered mail or reputable courier)
  • Basic proof of filing/sending (receipt, tracking, registry return card if available)

Common add-ons

  • Extra revisions beyond the included round(s)
  • Second demand letter or reminder notice
  • Follow-up calls/emails with the other side
  • Translations (English/Filipino/vernacular)
  • Notarization (usually not required for a demand letter, but sometimes requested for added formality)
  • Multiple service methods (e.g., courier and registered mail and email to counsel)
  • Extensive document review or forensic collation of evidence
  • Out-of-pocket expenses (OPE): courier, registry fees, print/binding, travel—normally billed separately at actual cost

Taxes, receipts, and withholding

  • VAT: Many firms charge 12% VAT on professional fees if VAT-registered; others may be non-VAT. Always ask whether quotes are VAT-inclusive.
  • Creditable withholding tax (CWT): If you’re a withholding agent (often companies), you may need to withhold a percentage of the fee (commonly 10% or 15%, depending on circumstances) and issue a BIR 2307. Confirm with your accountant.
  • Official receipts: Ask for an Official Receipt or Acknowledgment Receipt as applicable.

Sample pricing scenarios (illustrative)

  1. Unpaid invoice (₱80,000) – Metro Manila solo practitioner

    • Flat professional fee (letter-only): ₱7,500
    • Courier + registry mail + photocopies: ₱900 (OPE)
    • Estimated total: ₱8,400 (add VAT if applicable)
  2. BP 22 notice for a bounced check – small firm

    • Flat professional fee (includes one follow-up call): ₱15,000
    • Registered mail w/ return card + courier to alternate address: ₱1,200
    • Estimated total: ₱16,200 (plus VAT if applicable)
  3. Corporate IP infringement takedown demand – large firm

    • Flat fee (partner-led, complex): ₱45,000
    • Hourly tail for negotiations (cap 5 hrs @ ₱6,000/hr): ₱30,000
    • OPE (messengerial, registry, printing): ₱1,800
    • Estimated total if cap used: ₱76,800 (plus VAT if applicable)

Is a demand letter legally required?

  • Often helpful, sometimes required. For many money claims and small claims actions, prior demand and proof of receipt strengthen (or are required for) your case. For BP 22 complaints, written demand and proof of receipt (and the grace period) are critical.
  • Even when not required, a lawyer’s demand letter can resolve disputes early or set up your evidentiary trail.

Do’s and don’ts to keep fees predictable

Do

  • Come prepared: timeline, amount due, computation, screenshots, contracts, receipts.
  • Define scope in writing: one letter + 1 revision + one follow-up, exact service method(s), and turnaround time.
  • Ask for a fixed fee for the letter, with clear rates for any extras.
  • Clarify who signs (associate vs. partner) and the letterhead to be used.
  • Decide on service (registered mail with return card, reputable courier with POD, and/or email to known counsel) so you can prove receipt.

Don’t

  • Under-disclose facts; surprises later mean extra work and fees.
  • Assume notarization is needed (it usually isn’t).
  • Forget about OPE—ask whether the quote is exclusive of expenses and taxes.
  • Send communications directly to a represented party if you already know they have counsel—your lawyer should address counsel.

Red flags

  • “Template” letters with no factual/legal tailoring.
  • Vague quotes (“We’ll see the fee after”) with no scope or deliverables.
  • No written engagement terms or receipt.
  • Non-lawyers offering legal demand letters (unauthorized practice).
  • Claims of “non-refundable” everything without explaining what happens if work isn’t performed—fees must be reasonable and earned.

Frequently asked questions

1) How fast can it be done? Many lawyers can turn a simple letter around in 2–5 business days; true rush jobs cost more.

2) Will the lawyer call the other side? Only if included. Phone/email negotiations are usually separate from the letter fee.

3) Can I write the letter myself? You can—there’s no law stopping you—but a lawyer’s letter carries professional weight, avoids harmful admissions, and properly preserves claims/defenses.

4) Can the fee be contingent on collection? Sometimes, as a hybrid (small flat fee + success percentage). Pure contingency for just a demand letter is less common.

5) What if the other side ignores the letter? Discuss next steps in advance: a second letter, small claims, civil action, or specialized filings. Ask for a menu of follow-on fees.


A simple scope-of-work you can copy/paste

Engagement: Draft and send one formal demand letter on firm letterhead. Inclusions: (a) up to 45 minutes intake; (b) review of up to 25 pages of documents; (c) one draft + one revision; (d) sending via registered mail with return card or one courier; (e) electronic PDF copy. Exclusions (billable if needed): extra revisions; second demand letter; calls/emails with the other side; translations; notarization; multiple service attempts; extensive document review; travel. Timeline: Draft within 3 business days of complete documents; revision within 2 business days of client comments. Fee: ₱____, VAT (if any) extra; OPE at actual cost. Optional add-ons: one follow-up call (₱), second letter (₱), negotiation block of 2 hours (₱____).


Bottom line

  • Typical one-off range: ₱3,000–₱20,000 (simple)
  • Complex/high-stakes or premium firms: ₱15,000–₱75,000+
  • Confirm scope, taxes, OPE, and timelines in writing.
  • Prioritize proof of receipt and plan next steps if ignored.

If you want, tell me your situation (amount involved, where the parties are, any deadlines), and I’ll draft a tailored scope + fee checklist you can use when requesting quotes.

Disclaimer: This content is not legal advice and may involve AI assistance. Information may be inaccurate.