Quick answer

An action to collect a debt evidenced by a written promissory note or written loan agreement generally must be filed within 10 years from the date the right of action accrues. The clock does not necessarily start when the document is signed. It usually starts when the debt becomes due and the debtor is legally in default, which depends on the maturity date, demand provisions, payment schedule, acceleration clause, extensions, and later agreements.

The main periods under the Civil Code of the Philippines are:

Basis of the claim	General prescriptive period
Written promissory note or written loan contract	10 years from accrual
Oral loan contract	6 years from accrual
Mortgage action or foreclosure	10 years from accrual
Final judgment ordering payment	10 years from finality, subject to the special execution rules discussed below

These periods can be interrupted by a timely court action, a written extrajudicial demand by the creditor, or a qualifying written acknowledgment of the debt by the debtor. Special rules may apply if the debtor has died, the debt is secured by collateral, barangay conciliation is required, insolvency or rehabilitation proceedings are pending, or a final judgment has already been obtained.

The 10-year period for a written promissory note

Article 1144 of the Civil Code requires an action upon a written contract to be brought within 10 years from the time the right of action accrues. A signed promissory note containing the obligation to pay normally falls under this rule. Notarization is not what creates the 10-year period, although notarization may help prove the document’s execution and authenticity.

The important question is not simply, “When was the note signed?” It is:

When could the creditor legally sue because the debtor had breached a due and enforceable obligation?

Articles 1150 and 1169 of the Civil Code, together with Supreme Court decisions, require examination of the actual loan documents and the circumstances of default.

When does the period begin?

A note with a fixed maturity date

If the note says that the full amount is payable on a specific date, and the contract expressly provides that default occurs without demand, the cause of action will ordinarily accrue when the debt matures and remains unpaid.

Demand may also be unnecessary when:

The contract or the law expressly says so.
The timing of performance was the controlling reason for the obligation.
Demand would be useless because performance has become impossible through the debtor’s act.

The Supreme Court confirmed in Planters Development Bank v. Heirs of Delos Santos that the requirement of demand can be expressly waived in a promissory note. The result still depends on the precise wording of the parties’ documents.

When demand is required

Merely reaching the due date does not always place the debtor in legal default. If neither the contract nor an Article 1169 exception dispenses with demand, the creditor may first have to demand payment. In that situation, the cause of action may accrue when a proper demand is made and the debtor refuses or fails to comply.

The Supreme Court explained this distinction in Mercene v. Government Service Insurance System: prescription may run from the maturity date when demand is unnecessary, or from demand when demand is legally required.

This is why the maturity date, demand clause, waiver language, acceleration clause, and proof of demand must be read together.

Installment debts

For a loan payable by installments, each unpaid installment may give rise to a separate cause of action as it falls due. Consequently, the prescription date for an early missed installment may differ from the date for later installments.

An acceleration clause can change the result. Depending on its language, the clause may:

Automatically make the entire unpaid balance due after a specified default; or
Give the creditor the option to declare the whole balance immediately due.

The Supreme Court recognizes the validity of acceleration clauses and the creditor’s contractual choice to invoke them in appropriate cases. See Gotesco Properties, Inc. v. International Exchange Bank. The date the clause became operative or was validly invoked may therefore be critical.

A note payable on demand or without a clear maturity date

Do not assume that the period always begins on the signing date. A note payable on demand, a loan without a stated maturity, and an obligation from which the parties intended a period can raise different questions.

The result may depend on whether demand is part of the obligation, whether the note is immediately payable, and whether a court must first fix a period under Article 1197. The safest approach is to examine the complete note and surrounding agreement rather than treating “payable on demand” as a universal rule that produces the same accrual date in every case.

Payments, extensions, and restructuring

Article 1151 provides a special rule for actions enforcing obligations to pay principal with interest or an annuity: prescription runs from the last payment of the annuity or interest.

A valid written extension, renewal, restructuring agreement, or compromise may also change the maturity date or create a new enforceable undertaking. Whether it merely extends the original debt or novates it depends on the wording and the parties’ intent.

A partial payment can be legally significant, but it should not automatically be treated as resetting every possible prescriptive period. Its effect may depend on what was paid, how it was documented, whether interest is involved, and whether it clearly recognizes a subsisting debt.

What interrupts prescription?

Article 1155 of the Civil Code identifies three methods:

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

An interruption generally wipes out the time already elapsed and causes the applicable period to run anew. The Supreme Court discussed this effect in Permanent Savings and Loan Bank v. Velarde.

Written extrajudicial demand

A written demand can interrupt an already running period if it is made before prescription is complete. The renewed period is generally counted from the debtor’s receipt of the demand.

A sound demand should identify:

The creditor and debtor;
The promissory note or loan transaction;
The principal amount and payment history;
The maturity or default relied upon;
The amount presently demanded;
Where and how payment may be made; and
A reasonable deadline for compliance.

There is no universal rule that every private loan requires exactly 15 or 30 days to pay after demand. The contract, applicable law, and circumstances control.

Keep proof that the demand was sent and received. Registered-mail records, registry return cards, accredited-courier tracking, signed receiving copies, and authenticated electronic records may be important. Follow any notice address or delivery method stated in the contract.

An oral demand, telephone call, or undocumented visit does not satisfy Article 1155’s requirement of a written extrajudicial demand. A demand sent only after the action has prescribed does not, by the creditor’s act alone, revive the expired right to sue.

Written acknowledgment by the debtor

Not every reference to an old loan is a sufficient acknowledgment. Under Spouses Bautista v. Premiere Development Bank, the acknowledgment must clearly and unequivocally recognize a present, subsisting debt and the creditor’s right to enforce it. A statement disputing the balance, denying liability, or merely admitting that a loan once existed may be insufficient.

If prescription has already been completed, mere acknowledgment is not enough. The Supreme Court has stated that it must be accompanied by a new and positive promise to pay to overcome prescription already acquired.

For this reason, a creditor should not rely on vague messages such as “I remember the loan” or “Let us talk about it.” A debtor, meanwhile, should read any proposed acknowledgment, restructuring agreement, or payment undertaking carefully before signing.

Filing in court

A properly filed judicial action interrupts prescription. However, a creditor should not rely on a defective, abandoned, or improperly managed case. The Supreme Court has recognized situations in which dismissal or abandonment leaves the parties as though the action had not been commenced.

Filing with an office that is not a court does not necessarily qualify as judicial interruption. In Spouses Bautista, the Court held that applying for extrajudicial foreclosure with the sheriff is not an action filed in a court for purposes of Article 1155.

Barangay conciliation and the running period

Katarungang Pambarangay may be a mandatory precondition when the dispute is between individuals who actually reside in the same city or municipality and the matter falls within the lupon’s authority.

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.
That interruption cannot exceed 60 days.
The period resumes upon receipt of the proper certification to file action or certificate of repudiation.
A party may go directly to court when the action may otherwise be barred by the statute of limitations.

Do not assume that barangay proceedings provide an unlimited extension. If the deadline is close, obtain legal advice immediately about the direct-to-court exception and the proper allegations and proof.

Keep the barangay complaint, summons, minutes, settlement documents, certificates, and proof of the dates they were received.

Prescription of a mortgage action

A real estate or chattel mortgage is security for the principal debt, but enforcing the security involves additional rules. Article 1142 states that a mortgage action prescribes after 10 years from accrual.

The date is generally connected to the debtor’s default—not the date the mortgage was signed or annotated. Whether default began at maturity or only after demand again depends on the contract and Article 1169.

A creditor must also coordinate the available remedies. For nonpayment of a note secured by mortgage, collection of the credit and enforcement of the security arise from the same default. Filing separate or successive cases can violate the rule against splitting a cause of action. An invalid or prescribed foreclosure does not necessarily leave the creditor free to begin a separate personal collection action.

Foreclosure should therefore be reviewed by counsel before choosing between judicial foreclosure, extrajudicial foreclosure, and a personal action to collect.

Once the debt has become a final judgment

A final judgment follows different enforcement rules.

Under Section 6, Rule 39 of the Rules of Court:

A final judgment may generally be executed by motion within five years from its entry.
After five years, but before the judgment is barred by prescription, it must generally be enforced through an independent action for revival.
Article 1144 gives an action upon a judgment a 10-year period, counted from finality under Article 1152.

Do not treat an ordinary demand letter as a substitute for a timely motion for execution or action to revive a judgment. The five- and 10-year deadlines require examination of the entry of judgment and any periods during which execution was legally prevented.

What happens when prescription is complete?

Prescription ordinarily bars the judicial action to compel payment. It does not mean that the loan never existed or that every prior payment becomes refundable.

Articles 1423 and 1424 classify a prescribed civil obligation as a natural obligation. If the debtor voluntarily pays after the right to sue has prescribed, the debtor generally cannot recover that voluntary payment merely because prescription had already set in.

A court may dismiss a prescribed claim when the bar appears from the pleadings or evidence. A defendant should nevertheless state prescription clearly in the verified response or answer and support it with the relevant dates and documents.

For an ordinary unpaid civil debt, the 1987 Constitution prohibits imprisonment for debt. This does not excuse fraud or other independently punishable acts. A dishonored check, for example, may raise separate issues under laws with their own elements and deadlines; nonpayment alone should not be confused with proof of a crime.

Practical steps for a creditor

1. Build a complete date record

List, with supporting documents:

Date the money or property was delivered;
Date the promissory note was signed;
Original maturity and installment dates;
Each payment and how it was applied;
Date of the last interest payment;
Defaults and missed installments;
Date any acceleration clause was invoked;
Every written demand and date of receipt;
Every written acknowledgment or promise;
Extensions, renewals, restructurings, or compromises;
Barangay filing and certification dates; and
Prior court or foreclosure proceedings.

Calculate from the legally relevant accrual date—not automatically from the oldest date on the document.

2. Send a traceable written demand promptly

Do this before the apparent deadline. Address it as required by the contract and preserve proof of delivery. State the basis and computation of the amount honestly. Do not add undocumented charges or threaten arrest merely to pressure payment.

3. Preserve the evidence

Keep:

The original promissory note and loan agreement;
Proof that the loan proceeds were delivered;
Amortization schedules and statements of account;
Receipts, deposits, transfer confirmations, and returned checks;
Complete correspondence and electronic-message exports;
Demand letters and proof of receipt;
Written extensions and acknowledgments;
Collateral and foreclosure documents; and
Barangay or court records.

For electronic evidence, retain the complete conversation, account details, dates, original device or reliable export, and backups—not only cropped screenshots.

4. Determine whether barangay proceedings are required

Check the parties’ actual residences and the Local Government Code exceptions. Secure the correct certification before filing unless a direct-to-court exception applies.

5. Choose the correct procedure and court

Under the current Rules on Expedited Procedures in the First Level Courts, a straightforward money claim arising from a loan may be filed as a small claim when the principal claim does not exceed ₱1,000,000, exclusive of interest and costs.

Small claims use prescribed forms and require the claimant to submit the actionable documents, affidavits, and available evidence. Lawyers cannot appear for or represent a party at the hearing unless the lawyer is personally a party, although a party may obtain legal help in preparing the case.

For an ordinary personal collection action outside small claims, first-level courts generally have jurisdiction when the demand does not exceed ₱2,000,000, exclusive of the items identified in Republic Act No. 11576. Larger claims generally belong in the Regional Trial Court. Foreclosure, real-property issues, probate claims, and other special proceedings may follow different jurisdictional rules.

Venue, filing fees, required attachments, service, and electronic-filing availability should be confirmed with the appropriate court.

Practical steps for a debtor

Do not ignore a demand, barangay summons, or court summons.
Obtain the note, statement of account, payment ledger, demands, and delivery records.
Check whether the amount includes unsupported interest, penalties, or payments that were not credited.
Identify the maturity date, demand requirement, default clause, acceleration clause, and every possible interruption.
Preserve your receipts and complete communications.
If relying on prescription, state the defense and its supporting dates clearly.
Do not sign a restructuring agreement, acknowledgment, waiver, or new promise without understanding whether it changes or revives the claim.
Continue attending court even if you believe the action is prescribed; prescription must still be determined from the pleadings and evidence.

In a small-claims case, the defendant’s verified Response is due within a non-extendible 10 calendar days from receipt of summons. A small-claims judgment is final, executory, and unappealable. Urgent advice is appropriate as soon as summons is received.

Common mistakes

Counting 10 years automatically from the signing date.
Assuming every maturity date creates default without checking whether demand is required.
Treating calls or oral demands as Article 1155 interruptions.
Sending a demand only after prescription has already been completed.
Assuming any vague message or admission revives the debt.
Ignoring separate prescription dates for installments.
Demanding the entire balance without a valid or properly invoked acceleration clause.
Relying on an informal promise to extend time without a clear written agreement.
Filing in the wrong court or venue.
Skipping mandatory barangay conciliation.
Assuming a sheriff foreclosure filing is the same as filing an action in court.
Splitting collection and foreclosure remedies.
Losing the original note, proof of loan delivery, or payment records.
Waiting for settlement discussions while the filing deadline continues to run.

When legal help is urgent

Consult a Philippine lawyer promptly when:

The earliest possible deadline is only months or weeks away.
The accrual date or demand requirement is disputed.
The loan has installments, renewals, acceleration, or restructuring.
A mortgage, pledge, guaranty, surety, or several debtors are involved.
Foreclosure has begun or is being considered.
A previous case was dismissed or abandoned.
The debtor has died.
Rehabilitation, liquidation, or insolvency proceedings are pending.
A summons or notice of claim has been received.
There is a final judgment approaching its fifth or 10th year.
The creditor needs attachment or another provisional remedy.

If the debtor has died and estate proceedings have opened, do not rely only on the ordinary Civil Code period. Rule 86 generally requires money claims against the estate to be filed within the court’s published claims period, which must be not less than six nor more than 12 months from first publication. Missing that estate deadline can bar the claim, subject only to limited relief before distribution.

Frequently asked questions

Is every written debt collectible for 10 years after signing?

No. Ten years is counted from accrual of the right to sue, not automatically from execution. Maturity, default, demand, installments, extensions, and acceleration provisions determine accrual.

Does a demand letter restart the 10 years?

A written extrajudicial demand received before prescription is completed generally interrupts the running period and starts a new applicable period. A creditor’s demand after prescription has already set in does not by itself revive the action.

Does partial payment restart prescription?

It can materially affect the calculation, particularly where Article 1151 applies or the payment is accompanied by a clear written acknowledgment. The result depends on what was paid and documented. Do not assume that every undocumented partial payment automatically restarts the entire claim.

What if the loan was only oral?

An action upon an oral contract generally prescribes in six years from accrual under Article 1145. Bank transfers, receipts, messages, and witnesses may prove the transaction, but they do not automatically turn every oral agreement into a complete written contract.

What if the promissory note has no maturity date?

The obligation may be treated as payable on demand, or the circumstances may show that the parties intended a period that a court must fix. The document and surrounding agreement must be reviewed before selecting a prescription date.

Can the debtor be imprisoned for not paying?

Not for the debt itself. The Constitution prohibits imprisonment for debt. Fraud, issuance of a worthless check, or disobedience of a lawful court order involves separate legal elements and should not be inferred from nonpayment alone.

Does a prescribed debt disappear completely?

The judicial action is generally barred, but the debt may remain a natural obligation. A debtor who voluntarily pays a prescribed debt generally cannot recover that payment merely because the action had prescribed.

Does a judgment give the creditor another ordinary 10-year collection period?

A judgment is subject to Rule 39. It is generally enforceable by motion within five years from entry; after that, an independent revival action is normally required before the 10-year judgment period expires.

Official sources

This article provides general Philippine legal information, not advice for a particular debt, document, or case. Prescription is highly date- and document-sensitive. Sources and current procedures were checked as of August 3, 2026.