Ways to recover money from delinquent debtor

Dear PAO,

Good evening! I would like to ask for legal advice regarding my problem. Someone borrowed money from me three months ago and, until now, he has not paid the amount.

The check that he issued to me bounced since there were no sufficient funds in his account. Worse, he is hiding from me. Every time I call his office landline, he bangs the phone down. I can no longer contact his mobile phone.

What should I do in order to collect the P60,000 he owes? I am planning to file a civil case but I don’t know the procedure. Is there any other legal way for me to obtain my money back?

 Thank you and I hope you can help me.

Ferdie DC

Dear Ferdie,

Indeed, as you are planning, you may file a civil case against the person who borrowed money from you. The said civil case is specifically called as an Action for Collection of Sum of Money.

However, before commencing the civil action, it is imperative to know that there is a need for you to demand from the said person to pay his debt once his debt becomes due and demandable. The debt becomes due and demandable upon arrival of the date agreed upon to make good of the said debt.

Thus, if it was agreed upon that he will pay his debt on a certain date and he failed to do so, you have to demand from said person the payment of the amount borrowed from you. You may send a letter to him demanding to pay his debt with a warning that in case he will not make good of his debt, there is no other option but to file the necessary action against him.

The demand letter is first resorted to to avoid further litigation in the event that he will heed your demand and pay his debt.

Another option that you may choose to do before filing the above-mentioned civil action is to report the matter to the barangay authority for a possible amicable settlement during the mediation/conciliation proceedings to be conducted by the Lupong Barangay. This is particularly required if you and the borrower reside in the same or adjacent barangay within a city or municipality.

If he will neither heed your demand letter nor amicably settle with you during the mediation/conciliation proceedings, you may now file the above-mentioned civil action to enforce your right to collect from him.

The said action is considered a personal action; as such, the same can be commenced and tried before the proper trial court in the place where you reside or where the defendant resides, at your election.

At this instance, you may use the checks that were issued to you as evidence that the subject person has obtained a loan from you since you failed to mention in your letter that a promissory note was executed by the said person.

If after resorting to all the foregoing means to collect the money and your efforts were in vain, you may likewise file a criminal complaint for Violation of Batas Pambansa No. 22 or otherwise known as the “Bouncing Check Law” against said person in order for you to obtain your money back as well as to penalize him for issuing a worthless check.

Moreover, if the issuance of the check by the borrower was attended by deceit and it was the said issuance of the check to you which was the immediate consideration to lend him money, you may also file a criminal complaint for Estafa.

In this connection, we enjoin you to seek the services of a lawyer in the preparation of a written demand letter or in filing the above-mentioned civil and criminal actions.

We hope that we were able to enlighten you on the matter. Please take note however, that all the information contained herein are based on our appreciation of your question and on the assumptions we made. A different legal opinion may be given if other facts not included in your query will be discussed.

Editor’s note: Dear PAO is a daily column of the Public Attorney’s Office. Questions for Chief Acosta may be sent to dearpao@manilatimes.net or via text message (key in: Times dearpao <YOUR QUESTION> and send to 2299). –Persida Acosta, Manila Times