Does an unpaid debt expire in the Philippines?
Last updated: 2026-07-10 · Educational content; not legal advice.
Short answer
The right to sue on a debt prescribes (expires): under the Civil Code, an action to collect on a written loan contract prescribes in 10 years (Art. 1144) and on a purely oral loan in 6 years (Art. 1145), counted from the time the debt became due and was defaulted. But a written extrajudicial demand, a written acknowledgment, or a partial payment interrupts prescription and restarts the clock (Art. 1155). Prescription bars the lawsuit; it does not by itself "erase" the obligation. LabanPH can help you assess whether a stale claim against you has already prescribed.
Primary sources
Frequently asked
When does the prescriptive period start counting?
From the moment the obligation became demandable and you defaulted — generally the missed due date. For a written loan the clock runs 10 years (Art. 1144); for an oral loan, 6 years (Art. 1145).
Does making a small payment reset the clock?
Yes. Under Article 1155, a partial payment, a written acknowledgment of the debt, or a written extrajudicial demand interrupts prescription — the period starts over from that act. Be aware of this before making a token payment on a very old debt.
If the claim has prescribed, is the debt gone?
Prescription is a defense that bars the creditor's lawsuit if properly raised, but it does not automatically extinguish the underlying obligation. If you are sued on a prescribed claim, you must invoke prescription as a defense — it is not applied for you.
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