How Many Years Can You Collect a Debt? Prescription of Actions
Quick answer
A lender has ten years to sue on a written loan, such as a signed promissory note, and six years on an oral loan. The time is counted from when the right to sue accrues, which for a loan with a due date is usually when that date passes without payment. A case filed in court, a written demand by the creditor, or a written acknowledgment of the debt by the debtor interrupts the period. After the period has fully run, the debtor can raise prescription as a defense against the case.
How long does a lender have to sue?
It depends on the kind of obligation. The main rules for debts are in two articles of the Civil Code:
The following actions must be brought within ten years from the time the right of action accrues: (1) Upon a written contract; (2) Upon an obligation created by law; (3) Upon a judgment.
The following actions must be commenced within six years: (1) Upon an oral contract; (2) Upon a quasi-contract.
So:
| Kind of debt | Period to sue | Article |
|---|---|---|
| Written loan, promissory note, signed contract | 10 years | 1144(1) |
| Action upon a court judgment | 10 years from finality | 1144(3), 1152 |
| Oral loan or verbal agreement | 6 years | 1145(1) |
| Actions with no period fixed by law | 5 years | 1149 |
For other periods, such as defects in goods sold or ejectment, see the table of prescription of civil actions. For criminal cases, such as estafa or a bounced check, the rules are different: see How many years before a criminal case prescribes?
When does the period start?
Article 1150 says the time is counted "from the day they may be brought", unless a special provision says otherwise. For a loan with a fixed due date, the lender can usually sue once the due date passes without payment, so the period generally runs from then.
For obligations to pay principal with interest or an annuity, Article 1151 has a special rule: the time "runs from the last payment of the annuity or of the interest."
For a court judgment, Article 1152 says the period "commences from the time the judgment became final."
What stops the period from running?
Article 1155 lists three ways to interrupt prescription:
The prescription of actions is interrupted when they are filed before the court, when there is a written extrajudicial demand by the creditors, and when there is any written acknowledgment of the debt by the debtor.
- Filing the case in court.
- A written demand by the creditor made out of court, such as a demand letter.
- A written acknowledgment by the debtor, such as a signed letter saying "I still owe you ₱40,000".
Note the word "written" in the second and third. A verbal demand or a verbal promise to pay is not on this list. This page does not say whether a text message or an e-mail counts as a written demand or acknowledgment; that is a question for a lawyer.
The article says the period is "interrupted". This page does not explain how much time remains after an interruption, because that depends on case law not covered here.
Does going to the barangay stop the period?
Yes, but only for a limited time. Under Section 410(c) of the Local Government Code, while a dispute is under mediation, conciliation or arbitration, the prescriptive periods are interrupted when the complaint is filed with the punong barangay. They resume when the complainant receives the certification to file action, or the certificate of repudiation, from the lupon or pangkat secretary. The interruption "shall not exceed sixty (60) days from the filing of the complaint with the punong barangay."
If the time to sue is about to run out, Section 412(b) also allows parties to go directly to court when the action "may otherwise be barred by the statute of limitations". See Do I need to go to the barangay first?
Does an unpaid debt ever disappear?
The right to sue on it can be lost. Article 1139 says: "Actions prescribe by the mere lapse of time fixed by law." If the lender waited too long and nothing interrupted the period, the debtor can raise prescription in court, and the case can fail on that ground.
Article 1154 adds one protection for creditors: the period during which the creditor "was prevented by a fortuitous event from enforcing his right is not reckoned against him."
How does this work in real life?
These are made-up examples to show how the rules work. They are not advice for any real case.
Elena lent money to Rey under a signed note due on January 15, 2020. Rey did not pay. It is a written contract, so Elena has ten years from when she could first sue (Article 1144). In 2026, she sends Rey a written demand letter. Under Article 1155, the letter interrupts the prescription of her action.
Later, Rey signs a letter: "I still owe Elena ₱40,000 and will pay next month." This written acknowledgment of the debt also interrupts prescription (Article 1155).
Bong lent ₱10,000 to a co-worker on a verbal agreement, due in 2018. He only asked for payment by phone and never in writing, and the co-worker never acknowledged the debt in writing. The period for an oral contract is six years (Article 1145). If Bong sues now, the co-worker can raise prescription as a defense.
Lani filed a complaint at the barangay against a neighbor who owes her money. While the case is at the barangay, the prescriptive period is interrupted, but for no more than 60 days (Local Government Code, Section 410(c)).
When do you need a lawyer?
Talk to a lawyer if the due date of the debt is many years old, if you are not sure whether a demand or a message interrupted the period, or if you were sued on an old debt and want to raise prescription. Counting the period depends on the documents and dates in each case. If you cannot afford a lawyer, see Free legal help in the Philippines.
Which provisions does this answer rest on?
Frequently asked questions
How many years can a lender sue for an unpaid loan in the Philippines?
Ten years if the loan is a written contract (Article 1144) and six years if it is an oral contract (Article 1145) of the Civil Code. The period is counted from the time the right of action accrues.
Does a debt expire in the Philippines?
The right to sue on it can prescribe. Article 1139 says actions prescribe by the mere lapse of time fixed by law. Once the period has run out without interruption, the debtor can raise prescription against a case.
Does a demand letter stop the prescriptive period?
A written extrajudicial demand by the creditor interrupts the prescription of the action (Article 1155). So does filing the case in court, and any written acknowledgment of the debt by the debtor.
Does filing at the barangay stop the period?
Yes, for up to 60 days. Section 410(c) of the Local Government Code says the period is interrupted when the complaint is filed with the punong barangay and resumes when the certification or repudiation is received, but the interruption cannot exceed 60 days.
How long does a creditor have to sue on a court judgment?
An action upon a judgment must be brought within ten years (Article 1144), counted from the time the judgment became final (Article 1152). The Rules of Court have separate rules on carrying out a judgment, which this answer does not cover.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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