In Short
- Under Article 1169 of the Civil Code, a person who owes you is usually only legally late (in default) from the time you ask them to pay.
- Interest and damages for being late usually count from the date you asked.
- Courts and the small claims form ask whether you asked for payment first.
- Say how much, why they owe it, the deadline, and how to pay. Keep it factual and polite.
- Send it in a way that leaves proof of receipt: personal delivery with a signed copy, registered mail with return card, or courier.
Why a Demand Letter Matters
A Demand Letter is what usually makes the other person legally late. Article 1169 of the Civil Code says that a person who must give or do something is in delay from the time the creditor (the one owed) judicially or extrajudicially demands it, meaning asks for it in court or outside court. A Demand Letter is a demand outside court. Until you ask, the debtor (the one who owes) is usually not yet late, and the results of being late, such as interest and damages, may not start.
Article 1169 lists cases where demand is not needed, including when the contract or the law clearly says so (for example, a Promissory Note that says the debtor is in default without demand once a date passes) or when demand would be useless. Even then, a written demand is good evidence.
A demand also matters for later steps:
- The small claims Statement of Claim asks whether you demanded payment, how and when.
- To evict a tenant (ejectment) for unpaid rent or a broken lease, Rule 70 of the Rules of Court needs a demand to pay or follow the lease and to leave before the case can be filed.
- It shows the barangay and the court that you tried to settle first.
What to Put in It
- Date, and the full name and address of the person you are writing to.
- The basis: the loan, sale, lease or service, with the date and any document (for example, "the Promissory Note dated 4 February 2025").
- The amount or what they must do, with how you got the amount: principal (the amount borrowed), any agreed interest, payments already made.
- A clear deadline, such as a set number of days from receipt.
- How to pay or comply: bank account, address, or contact person.
- What you will do if they do not, stated plainly, such as taking the matter to the barangay or filing a case. Do not threaten things the law does not allow, like shaming them online or reporting them to their employer.
- Your name, signature and contact details.
Keep it calm and factual. The letter may end up as evidence, so write as if a judge will read it. Our Demand Letter template follows this outline.
A Demand Letter does not need to be notarized.
How to Send It, With Proof
The letter helps only if you can prove the other person received it. Keep at least one signed copy for yourself, then use one or more of these:
| Method | Your Proof |
|---|---|
| Personal delivery | Their signature, printed name and date on your copy. If they refuse to sign, note it, and have a witness sign an account of the delivery. |
| Registered mail (PHLPost) with return card | The registry receipt and the return card signed by the recipient. |
| Private courier | The proof of delivery showing who received it and when. |
| Email or messaging app | A screenshot showing it was sent and, ideally, read or answered. Use it in addition to one of the above. |
Use the address in your contract if there is one. Keep every receipt and return card with your file copy.
If They Do Not Pay
- If you both live in the same city or municipality, file a complaint at the barangay, which will try to help you settle. See barangay conciliation.
- If the barangay does not settle it, or does not cover your case, you can file a small claims case for money claims up to ₱1,000,000.
- For larger claims, other legal options, or a case against you, talk to a lawyer. The Public Attorney's Office gives free help to people who qualify.
Before You Send It
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Common Questions
Is a Demand Letter Required Before Filing a Case?
Not always, but often it is what makes the debtor legally late under Article 1169 of the Civil Code, eviction (ejectment) needs one, and the small claims form asks about it. It is usually wise to send one first.
Does a Demand Letter Need to Be Notarized?
No. What matters is that it is clear, signed, and that you can prove the other person received it.
Does a Demand Letter Have to Come From a Lawyer?
No. You can write and sign your own. A lawyer's letter may carry more weight with some people, but it is not legally required for a simple demand to pay.
How Many Days Should I Give?
The law does not set one period for every case. Pick a reasonable deadline and state it clearly. For eviction, Rule 70 sets its own waiting periods after demand, so check them before you file.
Not legal advice. This is general information. For advice on your own situation, consult a lawyer. If you cannot afford one, the Public Attorney's Office (PAO) or an IBP legal aid office may help for free.
Government fees, rules and requirements change, so always check with the office concerned before you go. Last reviewed October 8, 2026.