Document background
The Debt Collection Letter of Demand is a critical document in Philippine business and legal practice, used when formal attempts to collect an outstanding debt are necessary. It serves as a final written notice before potential legal action and must comply with Philippine Civil Code requirements and fair debt collection practices. This document is typically used after informal collection attempts have failed but before initiating court proceedings. It should clearly state the amount owed, basis of the debt, payment deadline, and potential consequences of non-payment. The letter must maintain a professional tone while being firm and should include all necessary details to withstand legal scrutiny if court action becomes necessary. Under Philippine jurisdiction, this document often serves as evidence of due diligence in attempting to collect the debt through proper channels.
