Quick answer

In the Philippines, an action to collect a debt based on a written contract or promissory note generally prescribes after 10 years from the date the creditor’s right of action accrues. An action based on an oral loan generally prescribes after six years. These periods do not necessarily run from the date the money was borrowed or the document was signed; the starting date depends on when payment became legally due and the debtor failed to perform.

Important exceptions can change the computation:

A note with a fixed maturity date is ordinarily enforceable when that date arrives.
A note payable on demand is generally due upon delivery, so delaying the demand does not necessarily delay prescription.
Each installment may have its own due date, unless a valid acceleration clause makes the entire balance due.
A timely written demand received by the debtor, a qualifying written acknowledgment of the debt, or the filing of the proper court action may interrupt prescription.
Special rules apply to mortgages, barangay proceedings, judgments, deceased debtors, and obligations governed by special laws.

Do not count from memory or assume that repeated verbal follow-ups kept the claim alive. Review the actual note, payment history, demand letters, proof of receipt, and any restructuring agreement.

The general prescription periods

Under Articles 1144 and 1145 of the Civil Code of the Philippines:

Basis of the claim	General period
Written contract or promissory note	10 years from accrual of the right of action
Oral contract	6 years
Quasi-contract, such as certain claims for money received without legal basis	6 years
Final judgment ordering payment	10 years from finality, subject to the separate execution rules
Action to foreclose a real estate mortgage	10 years from accrual

These are limitation periods for bringing an action. Other causes of action and special laws may provide different periods.

A bank deposit slip, fund-transfer record, receipt, text message, or chat can help prove that money changed hands, but it does not automatically make an oral loan a “written contract.” The court will examine whether an authenticated writing actually contains or adopts the debtor’s promise and the essential terms of the obligation.

When the 10-year period begins

Article 1150 of the Civil Code states that prescription is generally counted from the day the action may be brought. That requires identifying when the debt became due and when an enforceable breach occurred.

Note with a fixed due date

If a note says that the principal must be paid on 30 June 2026, the creditor ordinarily cannot sue before that date. If the debt remains unpaid when it becomes due, the right of action normally accrues at maturity, subject to any contractual requirement for demand and the rules on default.

A demand may still be important for default interest, damages, or an acceleration clause. Article 1169 generally places a debtor in delay after judicial or extrajudicial demand, unless the contract or law dispenses with demand, the due date was a controlling reason for the agreement, or demand would be useless.

Note payable on demand

A true demand note is ordinarily due immediately after delivery. The Supreme Court has held that prescription on promissory notes payable on demand began from delivery, not from a much later demand chosen by the creditor. See Cadalin v. POEA, discussion of demand instruments.

A creditor should therefore not leave a demand note unattended on the assumption that the 10 years will begin only after a demand letter is sent.

Installment debt

When money is payable in installments, each unpaid installment generally gives rise to a distinct cause of action when it falls due. The prescriptive period may therefore be different for each installment.

Read the acceleration clause carefully:

An automatic acceleration clause may make the entire unpaid balance due upon the stated default.
An optional acceleration clause may require the creditor to exercise the option, sometimes through a demand or filing.
The note may expressly waive demand or notice.

The wording and the creditor’s conduct matter. At final maturity, any remaining balance ordinarily becomes due under the note.

Debt with no clear maturity date

Do not assume that every undated or informal loan is immediately subject to collection. If the parties intended a period but did not fix it, Article 1197 of the Civil Code may require a court to determine the period. By contrast, a promissory note expressly payable on demand is ordinarily immediately due.

Restructured or renewed debt

A genuine restructuring agreement, renewal note, compromise, or new promise to pay may create a new maturity schedule. A casual extension, verbal accommodation, unsigned draft, or unilateral statement of account may not do so.

Compare the original documents with the alleged restructuring agreement. Determine whether the parties intended to replace the old obligation, merely modify payment dates, or only suspend collection temporarily.

What interrupts prescription

Article 1155 of the Civil Code recognizes three principal events that interrupt prescription:

Filing the action before the proper court;
A written extrajudicial demand by the creditor; or
A written acknowledgment of the debt by the debtor.

An effective interruption generally erases the time already elapsed and starts a new full prescriptive period. The Supreme Court explained this effect in Overseas Bank of Manila v. Geraldez.

Written demand by the creditor

A demand should clearly identify:

The creditor and debtor;
The loan or promissory note;
The due date and unpaid principal;
An itemized computation of interest, penalties, payments, and credits;
An unequivocal demand for payment;
A reasonable deadline and payment instructions; and
The creditor’s reservation of legal remedies.

Article 1155 does not require notarization, but the creditor must prove both the contents of the demand and its receipt. Use personal service with a signed acknowledgment, registered mail, a reputable courier with delivery records, or another method that produces reliable proof. A demand letter that was merely prepared or sent, without proof that the debtor received it, may fail to interrupt prescription. See Sulpicio Lines, Inc. v. First Lepanto-Taisho Insurance Corporation.

An authenticated email or electronic document may satisfy a writing requirement under the Electronic Commerce Act, but the creditor must still prove authenticity, contents, attribution, and receipt. Preserve the original electronic files, complete message headers, delivery records, and replies rather than relying only on screenshots.

A written demand sent only after prescription has already expired does not, by itself, revive the barred action.

Written acknowledgment by the debtor

A valid acknowledgment must be clear, specific, and directed to recognizing a present, enforceable debt. A message such as “I acknowledge that I still owe ₱100,000 under the note and will pay it” is much stronger than a statement merely admitting that a loan once existed.

In a 2024 ruling, the Supreme Court held that an acknowledgment must communicate a clear and unequivocal recognition of the creditor’s subsisting right. An admission that the debtor signed a note, coupled with a dispute over liability or the amount, may be insufficient. Once prescription has already accrued, mere acknowledgment is not enough; the Court stated that a new and positive promise to pay is required. See Spouses Bautista v. Premiere Development Bank.

A partial payment is not automatically a written acknowledgment. If relying on it, preserve a receipt, remittance instruction, signed payment schedule, or accompanying message attributable to the debtor. Article 1151 also has a specific rule for obligations to pay principal with interest or annuity, under which prescription runs from the last payment of interest or annuity.

Filing a court case

Filing the proper action in court interrupts prescription. A defective, abandoned, or dismissed case can create difficult questions about whether and for how long interruption operated. Filing in the wrong forum is especially risky when the limitation period is nearly over.

An application for extrajudicial foreclosure filed with the sheriff is not an action filed in court for purposes of Article 1155. The Supreme Court confirmed this in Spouses Bautista. A creditor should not assume that extrajudicial foreclosure stopped the limitation clock.

Special situations

Debt secured by a real estate mortgage

Both an action on a written promissory note and an action to foreclose a mortgage generally carry 10-year periods, but they are distinct remedies governed by their documents and procedural rules.

Collection, judicial foreclosure, and extrajudicial foreclosure are ordinarily alternative remedies arising from the same default. Choosing one may waive another, subject to a proper deficiency action after foreclosure. Before proceeding, review the mortgage, acceleration language, previous foreclosure steps, and any earlier cases. A failed foreclosure does not automatically restore every other remedy.

Barangay conciliation

Katarungang Pambarangay is generally a precondition when the dispute falls within the lupon’s authority, commonly where the parties are natural persons actually residing in the same city or municipality and no statutory exception applies.

Under Sections 410 and 412 of the Local Government Code:

Filing the complaint with the punong barangay interrupts the prescriptive period while mediation, conciliation, or arbitration is pending.
The interruption cannot exceed 60 days from the barangay filing.
The period resumes upon receipt of the applicable certificate or other document specified by law.
Parties may go directly to court when the action may otherwise be barred by the statute of limitations.

Keep the filed complaint, official receipt, summonses, attendance records, settlement papers, Certificate to File Action, and proof of the dates each document was received.

Debtor has died

A creditor ordinarily should not file an ordinary collection case against a deceased person. If estate proceedings have been opened, contractual money claims must generally be filed in those proceedings within the period fixed in the notice to creditors—at least six but no more than 12 months after the first publication. Limited late filing may be allowed before distribution for cause shown and on equitable terms.

These estate deadlines can bar a claim even if the ordinary Civil Code period has not yet expired. See Rule 86 of the Rules of Court.

A judgment has already been obtained

Once a judgment becomes final, the case is no longer governed simply by the original note’s maturity date.

Under Rule 39, Section 6:

A final judgment may generally be executed by motion within five years from entry.
After five years, but before the judgment becomes barred, it must generally be enforced through an independent action.
Article 1144(3) and Article 1152 of the Civil Code provide a 10-year period counted from finality of the judgment.

Do not wait until the fifth or tenth anniversary. Execution delays, prior writs, stays, appeals, and acts of the judgment debtor can affect the proper remedy. See the Supreme Court’s discussion in Land Bank of the Philippines v. Suntay.

Practical steps for a creditor

Create a date table. Record the loan date, delivery of the note, each due date, last payment, default, acceleration, every written demand and receipt, every written acknowledgment, barangay filing, and previous court filing.
Read the complete documents. Check maturity, installments, acceleration, waiver of demand, interest, penalties, venue, arbitration, security, solidary liability, and restructuring provisions.
Reconcile the account. Separate principal, stipulated interest, default interest, penalties, expenses, and payments. Do not capitalize interest or add charges without a contractual and legal basis.
Send a provable written demand while the claim is still timely. Keep the signed original, attachments, delivery proof, returned envelope, tracking history, and electronic records.
Complete barangay proceedings if required. If prescription is imminent, obtain legal advice immediately because the Local Government Code permits direct court action where the claim may otherwise become time-barred.
Choose the correct remedy and court. Do not split collection and foreclosure remedies without analyzing the consequences.
File well before the deadline. Allow time to correct venue, jurisdiction, verification, filing-fee, service, and electronic-filing problems.

Choosing the court procedure

A straightforward money claim arising from a loan or promissory note may use the small-claims process if the claim does not exceed ₱1,000,000, exclusive of interest and costs. The current Rules on Expedited Procedures in the First Level Courts govern.

Important points include:

File the verified Statement of Claim with the supporting affidavits and documentary evidence.
Current forms are available from the Office of the Court Administrator.
The defendant’s verified Response is due within a non-extendible 10 calendar days from receipt of summons and should include the supporting evidence.
Parties ordinarily appear personally; lawyers may advise them but generally may not appear at the hearing unless the lawyer is a party.
The small-claims decision is final, executory, and unappealable, subject only to extraordinary remedies in exceptional circumstances.

For ordinary civil jurisdiction, first-level courts generally hear money claims not exceeding ₱2,000,000, using the exclusions stated in Republic Act No. 11576. Claims above the jurisdictional amount ordinarily belong in the Regional Trial Court. The totality of joined claims and the relief actually sought can affect jurisdiction.

Under the current electronic-filing framework for trial-court civil cases, an initiatory pleading is filed through an authorized primary mode—personal filing, registered mail, or accredited courier—and must be electronically transmitted to the court in the required format within 24 hours. Confirm the proper court’s official email address and current instructions before filing. See the Supreme Court’s electronic-filing guidance.

Evidence to preserve

Keep the originals and reliable electronic copies of:

The promissory note, loan agreement, disclosure statement, and security documents;
Proof that the money or value was delivered;
Receipts, bank statements, transfer records, and payment schedules;
All demands and complete proof of receipt;
Emails, messages, letters, and signed acknowledgments;
Restructuring, extension, compromise, or settlement documents;
A complete statement of account and interest computation;
Barangay records and certificates;
Court pleadings, orders, entries of judgment, and writs;
Assignment documents if the debt was transferred;
The debtor’s verified address and identifying information; and
Corporate authority or a special power of attorney when someone acts for the creditor.

Do not alter, annotate, staple over, or surrender the original promissory note without retaining an appropriate record and receipt.

Common mistakes

Counting 10 years automatically from the signing date without checking maturity and default;
Assuming an unwritten loan also has a 10-year period;
Believing verbal reminders interrupt prescription;
Sending a demand without preserving proof of receipt;
Treating every partial payment as a sufficient written acknowledgment;
Assuming a demand sent after prescription revives the case;
Waiting indefinitely to demand payment on a demand note;
Ignoring separate installment dates and acceleration clauses;
Filing with the sheriff and assuming it is equivalent to filing in court;
Skipping required barangay conciliation;
Suing a deceased debtor instead of filing a claim in the estate case;
Filing in the wrong court or venue close to the deadline;
Omitting prescription from a defendant’s verified Response or answer; and
Allowing a favorable judgment to sit unenforced beyond the Rule 39 periods.

Prescription is an affirmative defense under the 2019 Amendments to the Rules of Civil Procedure. A defendant should raise it at the earliest opportunity, with the relevant dates and documents, even though a court may also dismiss when prescription is apparent from the pleadings or evidence.

When legal help is urgent

Consult a Philippine lawyer promptly if:

The apparent deadline is within the next several months;
A summons, foreclosure notice, estate notice, or demand for immediate payment has been received;
The note is payable on demand or contains an acceleration clause;
There were multiple renewals, partial payments, or disputed acknowledgments;
The debt is secured by real estate, a guaranty, or several solidary debtors;
A previous case or foreclosure was dismissed or declared invalid;
The original note is missing, altered, assigned, or allegedly forged;
The debtor has died, become insolvent, or entered rehabilitation or liquidation;
The parties or assets are in different countries; or
The interest, penalties, or collection charges are disputed.

FAQ

Does prescription erase the debt?

It generally bars judicial enforcement; it does not rewrite history as though the obligation never existed. Under Articles 1423 and 1424 of the Civil Code, a prescribed civil obligation may become a natural obligation. If the debtor voluntarily performs it, the debtor generally cannot recover what was voluntarily delivered.

Can a creditor send a demand every 10 years forever?

A valid written demand received before prescription expires may restart the applicable period. But a demand after the action has already prescribed does not by itself revive it, and the creditor must prove the demand and receipt. Repeated last-minute demands also invite factual and legal disputes.

Does a text message promising payment restart the period?

Possibly, if it is authenticated, clearly attributable to the debtor, and unequivocally recognizes a present debt and the creditor’s right to enforce it. A vague apology, settlement discussion, or disputed statement is not automatically sufficient.

Is demand always required before filing?

Not always. It depends on the note, maturity terms, acceleration clause, waiver language, and Articles 1169 and 1193 of the Civil Code. A written demand is nevertheless often prudent because it documents nonpayment and may interrupt prescription if timely and received.

Is a notarized promissory note required?

No general rule requires every promissory note to be notarized to be binding. Notarization can strengthen proof of due execution and date, but it does not cure missing consent, unlawful terms, lack of consideration, forgery, or prescription.

Can a prescribed debt still be used to threaten criminal charges?

Ordinary nonpayment of a loan is generally a civil matter. Separate criminal liability requires facts satisfying every element of a specific offense; it cannot be presumed merely because a debt is unpaid. Threats, harassment, or fabricated criminal accusations should be documented and referred to counsel or the proper authorities.

This article provides general Philippine legal information, not advice for a particular debt or document. Prescription can turn on a single date, clause, or proof of receipt. Primary legal sources and procedures were checked as of 29 July 2026.