Executive summary

As a rule, criminal complaints for violation of Batas Pambansa Blg. 22 (the Bouncing Checks Law) are not subject to barangay conciliation under the Katarungang Pambarangay (KP) system. That is because KP excludes offenses punishable by a fine exceeding ₱5,000 or by imprisonment exceeding one (1) year. B.P. 22 authorizes imprisonment of up to one year or a fine that commonly exceeds ₱5,000 (often tied to the value of the check), so it falls outside KP’s criminal coverage.

However, civil money claims arising from the same dishonored check (e.g., collection of the underlying loan or price) can fall within KP if the disputants are natural persons who live in the same city or municipality and no other statutory exception applies.

Below is the complete roadmap.

1) What KP covers—and what it doesn’t

KP’s basic coverage

KP (the barangay conciliation system under the Local Government Code and its rules) is a compulsory, pre-court/pre-prosecution step for certain disputes between natural persons who reside in the same city/municipality. It aims to achieve an amicable settlement before cases reach courts or prosecutors.

KP’s key criminal and civil exclusions

A dispute does not pass through KP when any of the following applies (high-level list; always check the text and special laws):

Penalty threshold: Offense is punishable by imprisonment exceeding 1 year or fine exceeding ₱5,000.
Party-type: At least one party is a juridical person (corporation, partnership, cooperative), or a government party, or a public officer in relation to official functions.
Residence: The parties do not reside in the same city or municipality (limited exceptions for adjoining barangays within the same city/municipality).
Nature/urgency: There is a need for urgent legal action (e.g., provisional remedies), there is no private offended party, or special statutes remove the matter from KP (e.g., certain VAWC cases).
Other categorical exceptions provided by law and rules.

When an exclusion applies, no barangay confrontation is required, and prosecutors/courts should not dismiss the case for lack of KP.

2) Penalties under B.P. 22 and why they matter to KP

B.P. 22 penalties: The law authorizes imprisonment of not less than 30 days but not more than 1 year, or a fine calibrated to the amount of the check (commonly well above ₱5,000), or both, at the court’s discretion.

Effect on KP: Because the imposable fine often exceeds ₱5,000, B.P. 22 falls within the KP penalty exclusion. Even when a court ultimately imposes a small fine, KP looks to the statutory imposable penalty, not the penalty eventually chosen in a particular case. Thus, B.P. 22 criminal complaints are generally not covered by KP.

Practical tip: Investigating prosecutors ordinarily should not require a Barangay Certificate to File Action for B.P. 22 criminal complaints. If one is presented, consider it surplus—not jurisdictional—unless the case was actually a civil collection claim miscaptioned as B.P. 22.

3) The civil side: When KP does apply in “bounced check” disputes

Many “bounced check” problems are really civil debts in disguise. If the complainant elects to file purely a civil action (e.g., sum of money or damages based on the underlying sale/loan), KP likely applies if:

Both parties are natural persons;
They reside in the same city/municipality; and
No other statutory exception applies.

No monetary ceiling: KP does not set a peso threshold for civil disputes between natural persons. So even large civil claims may still require KP, provided the residence and party-type requirements are met.

What to bring to the barangay for civil claims:

The dishonored check(s) and bank return slips (e.g., “DAIF,” “Account Closed”).
The underlying contract/IOU/sales invoice or any proof of consideration.
A simple computation of principal, interest (if any), and penalties.

Effect of settlement: A barangay settlement approved by the Punong Barangay or Pangkat and signed by the parties has the force of a final judgment after the cooling-off period. If the debtor defaults on an undertaking to pay contained in the settlement, the creditor may proceed to execution via the proper court process on the barangay settlement, rather than re-litigating the debt.

4) Common real-world configurations

Payee is a corporation; drawer is an individual. KP does not apply (party-type exception).

Criminal B.P. 22: File directly with the prosecutor; no KP.
Civil collection by corporation: No KP (juridical person).

Both parties are private individuals living in the same city. Payee files criminal B.P. 22.

Criminal: No KP (penalty/fine exclusion).
If payee instead files civil collection: KP required (no exception).

Parties live in different cities/municipalities.

Criminal B.P. 22: No KP regardless.
Civil collection: No KP (residence exception).

Urgent need for an attachment or TRO (risk of asset flight).

Criminal B.P. 22: No KP.
Civil: Can proceed in court and apply for provisional remedies; KP is not a bar where urgent action is needed.

5) Venue and process pointers

Criminal venue (B.P. 22): Generally where the check was drawn, issued, delivered, deposited, or dishonored (any of several places of commission recognized by jurisprudence).
Civil venue: As a rule, where the plaintiff or defendant resides (if purely personal action), subject to stipulation and special rules.
KP tolling: KP proceedings toll prescriptive periods only for disputes subject to KP. Since B.P. 22 is generally not KP-covered, do not rely on barangay filings to toll its short prescriptive period; compute prescription under special laws and general rules for offenses.

6) Payment, desistance, and their effects

Payment after filing a B.P. 22 case does not automatically extinguish criminal liability, although it can mitigate and often leads to negotiated dispositions (e.g., fine-only penalties).
Affidavits of Desistance are not binding on the prosecutor or the court; they may be considered with other circumstances.
Compromise may fully resolve civil liability, but criminal liability under B.P. 22 is statutory and public in character.

7) Compliance checklist (quick use)

For prosecutors / complainants (criminal B.P. 22):

☐ No KP needed (penalty/fine exclusion).
☐ Attach the check, bank return memo, notice of dishonor, and proof of receipt of notice.
☐ Evaluate good faith defenses (e.g., absence of notice) and elements (due date, knowledge of insufficiency, etc.).

For civil collection between two individuals in the same city/municipality:

☐ KP required unless a specific statutory exception applies.
☐ Bring underlying contract/consideration documents.
☐ If a settlement is reached, ensure it’s properly signed and approved to gain executory effect.

8) Bottom line

Criminal B.P. 22: Not subject to KP mediation/conciliation because of the penalty/fine exclusion. File directly with the prosecutor.
Civil money claims stemming from the same bounced check, if between natural persons living in the same city/municipality and without another exception, are subject to KP and must first go through the Lupon.

Use this two-track lens—criminal vs. civil—and the KP exclusions to decide your filing path swiftly and correctly.