In Philippine practice, a demand letter is often wise and sometimes legally necessary, but it is not automatically required in every small claims case. The real answer depends on (1) what the Small Claims Rules require procedurally and (2) what substantive law requires for your particular obligation (loan, sale, lease, services, etc.).

1) What “small claims” is (and what it isn’t)

A small claims case is a simplified court procedure for collection of money (and closely related monetary relief) within the amount set by the Supreme Court’s small claims rules. It is designed to be:

Fast and summary
Form-based (standard complaint/statement of claim)
Non-lawyer-friendly (parties generally appear without lawyers)
Document-driven (you win or lose mostly on papers and straightforward testimony)

Small claims is typically used for:

Unpaid loans / promissory notes
Unpaid goods sold and delivered
Unpaid services rendered
Unpaid rent and utilities (monetary portion)
Reimbursement claims where the amount is determinate

Even in small claims, the court still requires a valid cause of action: the debt must be due and demandable, and you must show the basis and amount through competent evidence (contract, receipts, acknowledgments, SOA, invoices, etc.).

2) What a demand letter does in Philippine law

A demand letter is a written notice to the debtor/obligor that:

States the obligation (what is owed and why),
Demands payment/performance by a deadline, and
Often warns of legal action if unpaid.

In Philippine civil law, a demand letter commonly serves these functions:

A. It can be an “extrajudicial demand” with legal effects

An extrajudicial demand can:

Interrupt prescription (i.e., stop the running of the time limit to sue) under Civil Code principles on interruption of prescription by demand.
Help establish that the debtor was notified and refused/ignored.

B. It can be required to place a debtor in “delay” (mora)

Under Civil Code rules on delay, many obligations require a demand before the debtor is considered in default for purposes of:

Delay damages
Legal interest due to delay
Certain consequences triggered by default

There are also exceptions where delay happens without demand, discussed below.

C. It can support claims for attorney’s fees (when allowed)

As a general civil law principle, attorney’s fees as damages are not automatic and are strictly scrutinized. A common statutory ground (in general civil practice) involves refusal to pay a just and demandable claim after demand. In small claims, parties generally appear without lawyers, but claims labeled “attorney’s fees” (whether contractual or as damages) may still be pleaded where legally supportable—courts tend to examine them closely.

D. It is excellent evidence of good faith and reasonableness

Courts appreciate proof that you tried to resolve the matter before litigating—especially where the other side later claims surprise or misunderstanding.

3) Is a demand letter procedurally required by the Small Claims Rules?

General rule: No blanket requirement

The Rules of Procedure for Small Claims Cases focus on:

Using the prescribed forms,
Attaching supporting documents, and
Appearing at hearing/settlement.

They do not impose a universal “no demand letter, no filing” rule for all small claims.

What is required instead

Procedurally, what the court needs is:

A matured claim (already due and demandable),
Sufficient documentary support, and
Compliance with other pre-filing requirements that may apply (especially barangay conciliation, discussed later).

Practical note: Many small claims templates/forms ask about prior demands or attempts to collect and encourage attachment of demand letters if any. That does not automatically convert a demand letter into a strict jurisdictional requirement.

4) The real issue: When is demand legally necessary for your claim?

Even if the small claims procedure does not always require a demand letter, substantive law might. The key question is:

Has your cause of action already accrued without a demand, or is demand part of what makes the obligation due/demandable or the debtor in default?

Situation 1: The obligation is already due on a specific date (usually no demand needed to sue)

If the contract says:

“Payable on or before June 30, 2025,” or
“Rent due every 5th of the month,” or
“Balance payable 30 days after delivery,”

Then once the due date passes, the claim is typically already due and demandable. You can usually file in small claims even without a prior demand letter.

But: demand may still matter for interest for delay, penalties, or attorney’s fees depending on the contract and the legal basis.

Situation 2: The obligation is “payable upon demand” (demand is usually essential)

If a promissory note or loan agreement states:

“Payable on demand,”
“Payable upon written demand,” or
The agreement otherwise indicates payment becomes due only when the creditor calls for it,

Then demand is normally a condition for the obligation to become due. Without proof of demand, the defendant can argue that the claim is premature (no cause of action yet).

In this scenario, a demand letter (with proof of receipt) is one of the most important exhibits you can have.

Situation 3: You want to claim delay damages or legal interest due to delay (demand is often needed)

Under Civil Code rules, delay (mora) generally begins only after demand, whether judicial (in court) or extrajudicial (like a demand letter), unless an exception applies.

Common exceptions where demand may not be necessary to establish delay include:

The obligation or law expressly says no demand is needed,
Time is of the essence (the date is controlling),
Demand would be useless (e.g., debtor cannot perform),
Certain reciprocal obligations where one party is already in default.

Even when you can sue without demand, your ability to collect interest and damages for delay may be stronger with a clear demand and a deadline.

Situation 4: Your contract requires a notice-and-cure step (demand required because you agreed to it)

Some contracts require:

Written notice,
A cure period (e.g., “within 10 days from receipt”), or
Specific mode of notice (registered mail to a particular address)

If you file without complying, the defendant may argue non-compliance with a condition precedent you accepted in the contract.

Situation 5: Claims based on checks (e.g., bounced checks used as basis for civil collection)

For purely civil collection in small claims (not criminal prosecution), you can sue based on the unpaid amount supported by the check and related documents.

However:

A written notice/demand and proof of receipt can be extremely helpful to prove refusal, establish timelines, and support interest/fees theories.
If any aspect touches criminal liability for a bouncing check, notice requirements become more sensitive—small claims itself is civil, but parties sometimes mix narratives. Keeping clean proof of demand/notice helps avoid confusion.

5) How skipping a demand letter can hurt (even if your case is allowed)

Even where demand is not strictly required to file, skipping it can create avoidable problems:

Prematurity defense (especially for “payable on demand” obligations)
Weaker basis for interest due to delay or delay damages
Harder to justify attorney’s fees (where pleaded)
Lost chance to interrupt prescription earlier (important if you’re near a deadline)
Less leverage for settlement (a demand letter often triggers payment plans)

6) Demand letter vs. Barangay conciliation (often confused)

A demand letter is not the same as Katarungang Pambarangay (barangay conciliation) requirements under the Local Government Code.

Barangay conciliation may be a true pre-filing requirement

For many civil disputes between individuals residing in the same city/municipality (and not covered by exceptions), the law generally requires an attempt at barangay settlement first. If required, you need a Certification to File Action (or appropriate barangay certification) before the court will proceed.

Small claims does not automatically erase barangay requirements. Whether barangay conciliation is required depends on:

Where parties reside,
Whether a party is a juridical entity,
Whether an exception applies (e.g., urgent legal action, parties in different localities, etc.)

So:

You might be able to file without a demand letter, but still be required to present barangay certification (if applicable).
Or you might have a demand letter but still get dismissed/suspended for lack of barangay compliance.

7) Best practice: What a strong Philippine demand letter includes

A good demand letter is short, specific, and provable.

Core contents

Correct full name of debtor and address (and any alternate addresses/emails used in the relationship)
Brief background of the transaction
Exact amount demanded, with a clear breakdown:
- principal
- interest (contractual or claimed legal interest) and from what date
- penalties (if stipulated)
- other charges supported by documents
Deadline to pay (commonly 5–15 days depending on context; use what’s reasonable or what the contract requires)
Payment instructions (where/how to pay)
Request for written response if they dispute the amount
Statement that failure to pay will compel filing of the appropriate civil action (small claims) and other lawful remedies

Attachments (when available)

Contract/promissory note
Delivery receipts/invoices
Statement of account (if relevant)
Proof of partial payments
Copy of the check and dishonor memo (if relevant)

Service and proof (this is the part many people overlook)

If you intend to use the demand letter in court, proof matters more than eloquence.

Good proof options:

Personal service with signed acknowledgment (name, date, signature)
Registered mail with return card
Reputable courier with tracking and proof of delivery
Email can help if you can authenticate it and show it’s the debtor’s used address; combining email with physical sending is stronger

Keep:

The exact letter you sent,
Proof of sending,
Proof of receipt/delivery (or refusal/return, which can still be useful).

8) A practical small claims pre-filing checklist (Philippines)

Confirm the claim is within small claims coverage and amount under current rules.
Confirm proper venue (usually where plaintiff or defendant resides, depending on the rule and nature of action).
Check whether barangay conciliation is required and secure certification if needed.
Gather documents proving:
- Existence of the obligation,
- Maturity (due date or demand-trigger),
- Amount owed (computation).
Send a demand letter when:
- The obligation is payable on demand, or
- You need to establish default/delay clearly, or
- You want to interrupt prescription, or
- The contract requires notice.
Prepare a clean computation of:
- principal
- interest/penalties (cite contract terms when applicable)
- other allowable charges
File using the required small claims forms and attach your exhibits.

9) Frequently asked questions

“Can I file small claims immediately after the due date without any demand?”

Often yes—if the obligation is clearly due on a specific date and the amount is determinable. Demand is still useful for interest/delay issues and settlement leverage.

“What if the debtor says they never received my demand letter?”

This is why proof of delivery matters. Courts generally weigh objective proof (signed receipt, return card, courier proof, credible email trail) far more than assertions.

“How long should I give in the demand letter?”

There is no universal number. Use:

The contractual cure period if specified, or
A reasonable period based on the circumstances (often 5–15 days for straightforward debts), avoiding unreasonable or oppressive deadlines.

“Does a demand letter have to be notarized?”

Not generally. A demand letter is typically a private written notice. Notarization may add formality but is not usually required.

“If I didn’t send a demand letter, will the court dismiss my small claims case?”

Not automatically. Dismissal risk rises when demand is part of what makes the obligation due (e.g., payable on demand) or where you rely on demand-dependent remedies (delay damages/interest theories) without other support.

Bottom line

A demand letter is not universally required before filing a Philippine small claims case.
Demand becomes critical when the obligation is payable on demand, when the contract or law makes notice a condition, or when you need to firmly establish default/delay, interrupt prescription, or support certain add-ons like interest for delay and attorney’s fees (where legally allowed).
Separate from demand letters, always check whether barangay conciliation is required, because that can be a true pre-filing gatekeeper.