Quick answer

In the Philippines, a court action to collect a debt generally must be filed within:

10 years if the claim is based on a written contract, including an ordinary written promissory note;
6 years if the loan agreement is oral; or
10 years from finality if the debt has already been confirmed by a final court judgment.

The period does not necessarily begin when the money was lent or the document was signed. It normally begins when the creditor first has the legal right to sue—usually the maturity date, the due date of an unpaid installment, or the date the entire balance becomes due under a valid acceleration clause.

A note payable “on demand” is ordinarily due immediately upon delivery, so the period may begin then rather than only when the creditor later chooses to demand payment.

Prescription can be interrupted by filing the proper action in court, a written extrajudicial demand from the creditor, or a legally sufficient written acknowledgment of the debt by the debtor. The dates, wording, delivery records, payment history, and contractual terms must all be examined before concluding that a claim has prescribed.

The basic limitation periods

Articles 1144 and 1145 of the Civil Code of the Philippines establish the principal rules:

Basis of the claim	General period
Written loan agreement or promissory note	10 years from accrual of the action
Oral loan agreement	6 years from accrual of the action
Final judgment ordering payment	10 years from finality of the judgment
Mortgage action	10 years from accrual of the mortgagee’s right to foreclose

These are periods for bringing an action. A different period may apply when the claim is governed by a special law or is legally characterized as something other than an action upon a contract. The name placed on the complaint is not conclusive; courts look at the allegations, documents, and actual source of the right being enforced.

When does the period begin?

Article 1150 of the Civil Code provides that prescription is counted from the day the action may be brought. The controlling question is therefore: When did the debt become due and enforceable?

Note with a fixed maturity date

If the note says that the full amount is payable on 30 June 2026, the creditor’s action normally accrues when payment becomes due and is not made. Subject to interruption or another applicable rule, the 10-year period is ordinarily counted from that maturity.

The period should not automatically be counted from the signing date if the debtor was given a later, enforceable maturity date.

Note payable on demand

A note with no maturity date, or one expressly payable on demand, is generally treated as due immediately after delivery. In Schwesinger v. Reich, the Supreme Court treated demand notes as immediately due and counted prescription from delivery. In National Development Company v. Tobias, an action on a note payable “on demand after date” was held prescribed when brought more than 10 years after issuance.

A creditor should therefore not assume that delaying the first demand also delays the start of prescription.

Debt payable by installments

For an installment loan, the document must be read carefully. Ordinarily, a cause of action arises as each installment becomes due and remains unpaid. Older installments may prescribe before later ones.

The result can change if the agreement contains an acceleration clause. A valid clause may make the entire unpaid balance immediately due after a specified default, sometimes without further notice or demand. The Supreme Court has recognized that such clauses produce legal effects; see Philippine Savings Bank v. Spouses Mañalac.

The exact accrual date depends on the clause. Some clauses operate automatically upon default; others require the creditor to elect acceleration or make a demand. Payment ledgers, notices, and the creditor’s conduct may therefore be decisive.

Obligation requiring a prior demand

Under Article 1169 of the Civil Code, default generally begins upon judicial or extrajudicial demand, subject to exceptions—such as when the contract dispenses with demand, the law so provides, time was a controlling motive, or demand would be useless.

This rule on default must be considered together with the maturity and prescription provisions. A demand cannot revive an action that had already prescribed merely because the creditor waited to send it.

What interrupts prescription?

Article 1155 of the Civil Code identifies three forms of interruption:

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

Interruption is important because, when legally effective, the applicable period generally begins to run anew. In Overseas Bank of Manila v. Geraldez, the Supreme Court explained that a written demand restarts the period upon the debtor’s receipt of the demand.

Written demand

A useful written demand should identify:

The creditor and debtor;
The loan or promissory note;
The principal amount claimed;
The applicable due date or default;
Payments and credits already applied;
Interest, penalties, or fees being claimed and their contractual basis;
A definite request for payment; and
A reasonable deadline and payment method.

The creditor should preserve reliable proof that the debtor received it. A dated letter alone may not establish receipt. Keep courier records, registry receipts and return cards, personal-service acknowledgments, email delivery records, and the complete message thread.

Because the law expressly refers to a written extrajudicial demand, a telephone call or purely verbal reminder should not be relied upon to interrupt prescription.

Written acknowledgment by the debtor

Not every reference to an old loan is an acknowledgment that interrupts prescription. In the Supreme Court’s 2024 ruling in Premiere Development Bank v. Central Surety & Insurance Company, the Court stressed that the acknowledgment must be clear, specific, unequivocal, and directed toward recognizing a presently enforceable debt.

A statement that a loan once existed, coupled with a denial of the balance or the creditor’s right to collect, may be insufficient. If prescription has already run, a mere acknowledgment is not necessarily enough; the Court stated that a new and positive promise to pay is required to overcome prescription already acquired.

A payment, proposed restructuring, balance confirmation, or message promising payment may affect the analysis, but its legal effect depends on its timing and wording. Article 1151 also provides a particular rule for obligations to pay principal with interest or annuity: prescription runs from the last payment of the annuity or interest. Do not calculate the deadline without reviewing the complete payment history.

Filing in court

The action actually enforcing the right must be filed in a court. Filing a claim with a nonjudicial office does not automatically qualify. The Supreme Court has held, for example, that an application for extrajudicial foreclosure filed with a sheriff is not an action filed before a court for purposes of Article 1155.

Filing the wrong action, abandoning a case, or allowing dismissal can create difficult issues. A creditor close to the deadline should not rely on an informal complaint, mediation request, demand letter still in transit, or a proceeding that does not enforce the debt.

A demand letter is not a substitute for timely filing

A demand letter can interrupt prescription if it meets the legal requirements and receipt is proved. It should nevertheless be sent well before the deadline.

Waiting until the final days is risky because the parties may dispute:

Whether the letter was received;
The date of receipt;
Whether the letter was truly a demand for payment;
Whether the sender had authority to act for the creditor;
Whether the debt described is the same debt later sued upon; or
Whether prescription had already expired before receipt.

If the date is close, obtain legal advice immediately and calculate from the earliest reasonably possible accrual date.

What happens after a creditor wins a case?

A final money judgment has its own enforcement timetable. 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 that five-year period, and before the judgment is barred, enforcement ordinarily requires an independent action.
Under Article 1144 and Article 1152 of the Civil Code, an action upon the judgment must generally be brought within 10 years from finality.

The 10 years are not added after the first five years. The Supreme Court explains that both periods are reckoned from entry or finality; see Clidoro v. Jalmanzar and the Rules of Court.

Delay not attributable to the judgment creditor may sometimes justify equitable relief, but that is exceptional and fact-dependent. A judgment creditor should move for execution promptly.

Practical steps for a creditor

Collect every controlling document. Secure the original note or best available copy, loan agreement, disclosure statement, payment schedule, receipts, bank records, collateral documents, assignments, and guaranty or surety agreements.
Build a dated transaction history. List the loan release, contractual maturity, every installment due, every payment, every default, every written demand and receipt, and every written response.
Read the default and acceleration clauses. Determine whether acceleration was automatic or required an election, notice, or demand.
Compute conservatively. Start with the earliest plausible date on which the action could have been brought. Then identify each possible interruption and the evidence proving it.
Reconcile the amount. Separate principal, contractual interest, penalties, fees, and payments. Excessive or unconscionable charges may be reduced by a court even when the principal debt is valid.
Check barangay conciliation. When both parties are individuals actually residing in the same city or municipality, prior Katarungang Pambarangay proceedings may be required. Sections 408 and 412 of the Local Government Code contain the coverage and exceptions. Direct court filing is allowed when delay would otherwise cause the action to prescribe.
Choose the correct procedure and venue. A qualifying pure money claim not exceeding ₱1,000,000, excluding interest and costs, may be brought under the Supreme Court’s Rule on Small Claims. Use the current official forms and verify venue before filing.
Act before the last day. Filing fees, documentary requirements, barangay certification, authority to represent a juridical entity, and venue errors can cause delay.

Practical steps for a person receiving an old collection demand

Do not ignore court papers, even if the debt appears old. Prescription is a legal defense whose application depends on evidence and the correct accrual date.

Before admitting the amount or signing a restructuring agreement:

Ask for the promissory note, loan agreement, statement of account, and proof of assignment if a collection agency or new creditor is demanding payment;
Check the maturity date, acceleration clause, last payment, earlier demands, and any acknowledgments attributed to you;
Compare the creditor’s computation with your receipts and bank records;
Preserve envelopes, emails, text messages, and screenshots showing when demands were received;
Determine whether a case or judgment already exists; and
Obtain advice before signing a balance confirmation, compromise, waiver, or new promise to pay.

Do not make false statements or destroy records. A valid debt may remain enforceable despite its age because prescription was interrupted, the accrual date was later than assumed, or a special rule applies.

Evidence worth preserving

Both sides should retain:

The signed note and all amendments;
Proof of release or receipt of the loan proceeds;
Amortization schedules and statements of account;
Official receipts, deposit slips, transfer confirmations, and cancelled checks;
Demand letters and proof of delivery or receipt;
Emails, messages, and letters discussing the balance or promising payment;
Notices invoking acceleration;
Barangay complaints, settlements, and certificates to file action;
Court pleadings, orders, proof of finality, and entries of judgment;
Assignment or endorsement documents showing who presently owns the claim; and
Corporate resolutions, special powers of attorney, or other proof of authority.

Keep original files and unedited exports where possible. Screenshots should show the account identity, date, time, and surrounding conversation—not only an isolated sentence.

Common mistakes

Counting 10 years automatically from the signing date without checking maturity;
Assuming a demand note becomes due only after the first demand;
Treating every text message or verbal reminder as an interruption;
Failing to prove that a written demand was received;
Assuming any mention of the debt is a sufficient written acknowledgment;
Ignoring installment dates and acceleration language;
Believing the first five-year judgment-execution period extends the overall deadline to 15 years;
Filing only with a sheriff or nonjudicial office and assuming this is a court action;
Skipping mandatory barangay conciliation when it applies;
Using the small-claims process for a claim outside its coverage;
Claiming interest, penalties, or attorney’s fees without a valid basis; and
Waiting until the deadline to locate the original documents or establish authority to sue.

When legal help is urgent

Consult a Philippine lawyer promptly if:

The earliest possible prescriptive deadline is within the next few months;
The note is payable on demand or has no maturity date;
Some installments are more than six or 10 years old;
The creditor accelerated the loan;
There were several demand letters, partial payments, restructurings, or acknowledgments;
The debt was assigned to another creditor;
A mortgage, pledge, guaranty, or suretyship is involved;
A prior case was dismissed or an attempted foreclosure failed;
Barangay conciliation may consume the remaining time;
Court summons, a small-claims notice, a writ of execution, or foreclosure papers have been received; or
A final judgment is approaching its fifth or 10th year.

Frequently asked questions

Does a promissory note expire after 10 years?

Not automatically 10 years after signing. The action generally prescribes 10 years after the right to sue accrues, subject to valid interruption, special rules, and the terms of the note.

Does an oral loan have a shorter period?

Generally, yes. An action upon an oral contract must ordinarily be commenced within six years from accrual. Written messages or receipts do not automatically convert every oral arrangement into a complete written contract; the documents and asserted cause of action must be examined.

Can a text message interrupt prescription?

Potentially, if it is an authentic writing that clearly and unequivocally acknowledges a present, enforceable debt. A vague statement, settlement inquiry, or disputed-account message may not qualify. Identity, completeness, wording, and timing matter.

Does a demand letter always restart the 10-year period?

No. It must be a written extrajudicial demand concerning the claim, made before prescription has completed, and receipt should be proved. A late demand does not automatically revive an already prescribed action.

Does partial payment restart prescription?

It may materially affect the calculation, particularly when it includes interest or is accompanied by a clear written acknowledgment. The payment’s date, application, documentation, and surrounding communications must be reviewed; partial payment should not be treated as an automatic rule in every case.

Can an old prescribed debt still be paid voluntarily?

Yes. Prescription of the action does not necessarily erase every underlying moral or natural obligation. Under Article 1424 of the Civil Code, a debtor who voluntarily performs after the civil action has prescribed generally cannot recover what was delivered on that ground alone.

Is a small-claims decision appealable?

A first-level court’s small-claims decision is final, executory, and unappealable under the current rule, although extraordinary remedies may be available only in legally exceptional circumstances.

Can parties agree to waive prescription in advance?

A person may renounce prescription already obtained, but the Civil Code does not allow a prospective waiver of the right to invoke prescription. The validity and effect of any acknowledgment, restructuring, compromise, or waiver should be assessed from the actual document.

Official sources

This article provides general legal information, not legal advice or a definitive calculation for any particular debt. Prescription depends on the documents, dates, communications, procedural history, and applicable special laws. Sources and procedures were checked as of 30 August 2026.