Filing an estafa case against a family member in the Philippines is emotionally heavy and legally complicated. It’s not just “sending someone to jail”; it also affects family relationships, inheritance, and day-to-day life. This guide walks through the law, the process, and the practical realities as clearly as possible.

1. What Is Estafa?

In Philippine law, estafa (swindling) is mainly governed by the Revised Penal Code, particularly Article 315.

Very simply, estafa happens when:

Someone defrauds another, causing damage, by abusing trust or using fraudulent acts or false representations.

Common features:

There is deceit or abuse of confidence
You surrender money, property, or rights because of that deceit or trust
The other person misuses it or does not do what was agreed
You suffer damage (financial loss, loss of property, or similar)

Estafa is different from:

Theft – where property is taken without your knowledge or consent
Simple unpaid debt – where there is no deceit or abuse of confidence, just non-payment

2. Common Ways Estafa Is Committed (Relevant to Family Situations)

The law enumerates different “modes” of estafa. The ones that commonly arise within families are:

2.1. Estafa by Abuse of Confidence (Misappropriation or Conversion)

Typical pattern:

You entrusted money, goods, or property to your family member:
- For safekeeping
- For a specific purpose (e.g., to pay tuition, to buy something, to invest in a business)
They used it for themselves or in a different way than agreed (misappropriated/converted it)
You demanded its return, delivery, or accounting
They failed or refused to comply
You were financially harmed

Family examples:

You give your sibling ₱200,000 to pay a developer for a house, but they secretly use it for personal expenses and never pay the developer.
Your parent or child sells jewelry or gadgets you entrusted to them “for safekeeping” and refuses to return the value.
You put money into a family business where one relative is managing the funds; they draw out huge amounts for personal use and refuse to account.

2.2. Estafa by False Pretenses or Fraudulent Acts

Here, deceit happens before or at the time you part with your money/property.

Examples in a family context:

A relative lies about having a lucrative “sure win” investment, fabricates documents, and gets you to give them money based on those lies.
A family member claims they will buy property in your name, shows fake documents or misleading screenshots, then pockets the money.
A relative induces you to sign a document by telling you it’s “just for formality,” when in fact it transfers your property to them.

Not every broken promise is estafa. The deceit or false representations must be substantial and intentional, not just optimism or poor judgment.

3. Estafa vs. Purely Civil Cases: Is It Really Criminal?

Before you file criminal charges, you must ask: Is this estafa, or just a loan or business deal gone bad?

Estafa usually involves:

Entrustment or confidence – The other person received the property because you trusted them or because of a specific agreement
Deceit – They lied or hid important information at the time you gave the property
Misappropriation – They used or disposed of the property as if it were their own, against the agreement
Damage – You lost money, property, or suffered measurable damage

Whereas a pure civil case (like a simple loan) looks like:

You freely lend money
There’s no fraudulent scheme or abuse of a special trust
The borrower simply cannot pay, or payment is delayed
Your remedy is usually civil: collection of sum of money, not estafa

Courts are generally cautious: they do not want criminal courts to be used as pressure tools for collecting ordinary debts. If the dispute is purely about non-payment with no deceit, judges and prosecutors may treat it as civil only.

4. Special Rule: When Family Members May Be Exempt from Criminal Liability

Philippine law has a humanitarian policy: for certain crimes between close family members, there is no criminal liability, only civil liability (meaning no jail time, but they may still have to pay).

This rule covers theft, swindling (estafa), and malicious mischief between specific relatives, generally:

Spouses
Parents and children, grandparents and grandchildren (ascendants and descendants)
Certain relatives by affinity (in-laws) in the direct line
In some cases, brothers and sisters, and in-laws if they live together

Key effects:

If this rule applies, you cannot pursue estafa as a criminal case; only a civil case (to recover money/property) can proceed.
The relationship is a matter of proof: birth certificates, marriage certificates, etc.
If the accused proves the relationship and that the law covers your situation, the criminal case may be dismissed, leaving only civil liability.

However:

More distant relatives, like cousins, uncles/aunts, many in-laws not in the direct line, and siblings not covered by the living-together condition, may not be protected.
The exact application can be nuanced. If you’re uncertain whether your relationship is covered, a lawyer can evaluate it.

5. Things to Think About Before Filing Against a Family Member

5.1. Emotional and Practical Consequences

Filing a criminal case could result in:

Arrest and possible detention
Criminal record if convicted
Serious long-term family conflict (siblings, parents, children, inheritance issues)
Pressure on other relatives to “take sides”

Sometimes, people file criminal cases to pressure repayment, then later regret it when relationships are irreparably broken. Be clear about your goal:

Do you want compensation (to get your money/property back)?
Do you want punishment or to set a boundary?
Are you okay living with the impact on family relationships?

5.2. Safety and Power Imbalances

In some families, issues are tied to:

Financial dependence
Emotional or physical abuse
Threats or harassment

If you fear retaliation, violence, or harassment, you may also need:

Support from trusted relatives or friends
Guidance from a lawyer
Possible protection via other legal remedies (e.g., laws on violence against women and children, if applicable)

6. Building Your Case: Evidence You Will Need

Prosecutors need probable cause; judges need proof beyond reasonable doubt. Emotions or stories alone are not enough. Important evidence includes:

Documents showing entrustment or agreement
- Written contracts, MOAs, promissory notes
- Emails, messages, or letters explaining the purpose of the money or property
- Receipts for money you handed over
- Bank, GCash, or other transfer records
Proof of deceit or promises
- Chat messages where your relative made false representations
- Fake documents they showed you
- Audio or video recordings (if lawfully obtained)
Proof of misappropriation
- Records showing they used the funds for themselves (e.g., transfers to their own account, unexplained withdrawals)
- Their written admissions, if any
Proof of demand and refusal
- Demand letters (from you or your lawyer)
- Messages where you ask for accounting/return and they:
  - Refuse
  - Ignore
  - Give illogical or shifting excuses
Proof of relationship, if relevant
- Birth certificates, marriage certificates (especially if the other side claims exemption due to relationship)
Witnesses
- Family members or friends who witnessed the agreement, entrustment, or conversations
- Professionals (e.g., brokers, agents, accountants) who can confirm the transaction’s background

The stronger and more organized your evidence, the higher the chances that the prosecutor will file the case and that it will survive trial.

7. Demand Letter and Attempts at Settlement

Before filing:

Consider sending a formal demand letter, ideally through a lawyer, stating:
- The facts (date, amount, nature of entrustment)
- How they misused the funds or property
- The amount demanded and deadline for compliance
- A statement that you will pursue legal remedies, including criminal and civil, if they fail to comply
Purposes of a demand letter:
- Shows good faith on your part
- Helps establish an element of estafa (demand and refusal)
- May lead to voluntary settlement (installment payments, partial restitution)

You can still file estafa even without a lawyer-written demand letter, but it often helps clarify the record.

8. Barangay Conciliation (Katarungang Pambarangay)

Depending on the amount involved, the nature of the offense, and your location, your dispute may need to go through barangay conciliation first if:

You and the family member live in the same city/municipality, and
The case falls within the barangay’s jurisdiction

Possible steps:

File a complaint with the Punong Barangay (Barangay Captain).
Attend mediation and, if needed, conciliation before the Lupong Tagapamayapa.
If no settlement is reached, you will be issued a Certificate to File Action, which you may need to show when you file in court or with the prosecutor.

Some cases are exempt from barangay conciliation (e.g., more serious offenses, or parties from different cities/municipalities). Whether your specific estafa case requires it can depend on the penalty and local practice; a prosecutor’s office or a lawyer can clarify this.

9. Preparing and Filing a Criminal Complaint for Estafa

9.1. Complaint-Affidavit

The core document is a Complaint-Affidavit, usually drafted with a lawyer’s help (though not strictly required). It should contain:

Your full name, address, and personal circumstances
The full name and address of your relative (respondent)
A clear narration of facts, in order:
1. How you are related
2. How, when, and where the money/property was given
3. The purpose and agreement (what they promised to do)
4. How they misused or diverted the funds/property
5. Your demands for return or accounting and their refusal
6. The total amount of damage
A statement that you are filing a complaint for estafa under the Revised Penal Code
A list of attached documents (Annexes)
Your signature and a jurat (sworn before a notary public or prosecutor)

You may also attach supporting affidavits of witnesses, similarly notarized.

9.2. Where to File

You can usually file the complaint:

With the Office of the City Prosecutor or Provincial Prosecutor where:
- The offense was committed; or
- Any essential element took place (e.g., where the money was given or where the demand was made/received)

In some cases, you may initially file with the police, who will then conduct a preliminary investigation or endorse the case to the prosecutor. For estafa, many complainants go directly to the prosecutor’s office.

10. What Happens After Filing: Preliminary Investigation

10.1. Docketing and Raffle

The prosecutor’s office receives your complaint, assigns a docket number, and raffles it to a specific prosecutor.

10.2. Subpoena and Counter-Affidavit

The prosecutor issues a subpoena to your relative (respondent), attaching your complaint and giving them a chance to file a Counter-Affidavit.
They may claim:
- No deceit or abuse of confidence
- That it was a simple loan or civil dispute
- That they already paid or partially paid
- That the family relationship exempts them from criminal liability

You may be allowed (or required) to file a Reply-Affidavit addressing their defenses.

10.3. Clarificatory Hearing (Optional)

The prosecutor may set a clarificatory hearing to ask questions. This is not yet a full trial—it’s part of investigation.

10.4. Resolution

After review, the prosecutor will issue a Resolution:

If no probable cause:
- The complaint is dismissed. You may file a motion for reconsideration or appeal to higher authorities (e.g., DOJ), subject to rules and deadlines.
If probable cause exists:
- The prosecutor files an Information for estafa in the proper trial court (Metropolitan/ Municipal Trial Court or Regional Trial Court, depending on amount and penalty).

11. Court Stage: From Filing to Trial

11.1. Issuance of Warrant or Summons

Once the Information is filed:

The court examines the case and may:
- Issue a warrant of arrest, or
- Issue a summons for the accused to appear (often where the penalty is relatively light)

In most estafa cases, the offense is bailable.

11.2. Bail

Your relative can post bail to avoid detention or to be released while the case is pending.
Bail amount depends on the penalty and the trial court’s guidelines.

11.3. Arraignment and Pre-Trial

The accused is arraigned (the charge is read, and they enter a plea).
A pre-trial is held to:
- Mark exhibits, list witnesses
- Explore possible stipulations (agreed facts)
- Sometimes consider settlement or plea bargaining

11.4. Trial

If no settlement/plea is reached, the case proceeds to full trial:

Prosecution’s evidence
- You and your witnesses testify
- Documentary and other evidence is presented
Defense evidence
- The accused and their witnesses testify
- They may attack your credibility, the existence of deceit, or the criminal nature of the transaction
Decision
- The court issues a judgment:
  - Acquittal – if there is reasonable doubt or elements not proven
  - Conviction – if all elements of estafa are proven beyond reasonable doubt

12. Penalties and Civil Liability

12.1. Criminal Penalties

The penalty for estafa depends largely on the amount involved, with higher amounts leading to higher penalties. The law on penalties has been updated (for example, by legislation that adjusted values and penalty ranges), so:

The court looks at:
- The value defrauded
- The mode of estafa
- Any aggravating or mitigating circumstances

Penalties may include:

Imprisonment (prision correccional, prision mayor, etc., depending on the amount)
Possibly fines, depending on the specific mode and amount

Estafa is generally bailable and probationable if the penalty imposed is within the allowable range and the accused is otherwise qualified.

12.2. Civil Liability

Even if the case is criminal, the accused typically also incurs civil liability:

Restitution – returning the money or property
Indemnification for damages – e.g., interest, consequential losses if proven
Costs of suit, possibly

If the family member is acquitted purely on reasonable doubt, the court might still find civil liability from the same act if the evidence supports it (depending on the basis of acquittal).

13. Alternatives: Civil Case, Settlement, and Desistance

13.1. Filing a Civil Case Only

If:

The family relationship likely exempts your relative from criminal liability; or
The case is really more of a loan or investment gone bad, without fraud; or
You prioritize recovery of money over punishment

…you may file a civil action instead:

Collection of sum of money
Damages (if proper)
Possibly small claims for smaller amounts, where procedures are simplified and lawyers are not required in hearings

13.2. Settlement at Any Stage

You and your relative can settle at almost any point:

Before filing (via private negotiation or barangay)
During preliminary investigation (e.g., agreement to pay in installments, then you file an affidavit of desistance)
During trial (compromise or restitution)

However, note:

An affidavit of desistance does not automatically dismiss a criminal case once it is filed in court; the judge still evaluates if continuing the case serves public interest.
Where the law says only civil liability exists (e.g., certain close family cases), the criminal aspect may be extinguished.

14. Risks of Filing a Weak or Malicious Case

Be careful not to file a baseless or purely retaliatory criminal complaint. Risks include:

The case being dismissed, which may:
- Strengthen your relative’s position in any later civil dispute
You being accused of:
- Perjury, if you knowingly lied in your sworn affidavit
- Malicious prosecution or similar civil actions for damages

This is why accurate, well-documented facts are crucial. When in doubt, seek legal advice before swearing out a complaint.

15. How to Protect Yourself in Future Family Transactions

Whether or not you end up filing an estafa case, future-proof yourself:

Put agreements in writing, even with family:
- Simple written contracts or receipts
- Clearly state the amount, purpose, and obligations
Avoid mixing personal/family relationships with undocumented business arrangements
Use traceable payment methods:
- Bank transfers, checks, e-wallets, with clear descriptions
Insist on periodic accounting if funds are entrusted for business or projects
If the other party resists documentation (“family tayo, walang papel-papel”), consider that a red flag.

16. Getting Help

If you are seriously considering filing an estafa case against a family member:

Consult a Philippine lawyer experienced in criminal and/or family property disputes.
If you cannot afford a private lawyer and you meet the qualifications, you may approach:
- Public Attorney’s Office (PAO)
- Local legal aid clinics (e.g., law schools, IBP chapters)

Bring all relevant documents and be prepared to narrate the facts chronologically.

Final Note

Filing an estafa case against a family member in the Philippines is legally possible but not always straightforward:

The law may exempt certain close relatives from criminal liability, leaving only civil remedies.
Prosecutors and courts closely examine whether the situation is truly criminal or just a civil debt or business loss.
The emotional, financial, and relational costs can be high.

Understanding the law, organizing your evidence, and obtaining competent legal advice are essential steps before you decide how to proceed.