u/lhlhucifer

Hi everyone. Please be kind! Gusto lang sana namin malaman kung paano usually hina-handle ang situation na ganito.

We were hired for a design service project last year. May signed contract kami with the client, although unfortunately, hindi namin ito napa-notarize.

Hindi pa fully paid ang client, and the outstanding amount has now reached around ₱700k+ including interest. Before, nagsasabi pa sila na magbabayad sila, but since April 2026, wala na kaming natatanggap na meaningful response or payment from them.

based on the circumstances, sinabi sa amin na this would likely fall under small claims

Ang main problem namin ngayon is hindi namin alam kung paano properly mag-serve ng formal demand letter.

• Alam namin kung saang subdivision sila nakatira, pero hindi namin alam ang exact house number or address. We previously tried to leave a demand letter with the subdivision administration, pero nirefuse nilang tanggapin. They said na ayaw nilang makialam and mentioned the Data Privacy Act.
• The client also comes from a politically influential family in our area, so medyo hesitant din kami to go through the barangay dahil natatakot kami na baka kami pa ang ma-intimidate or ma-harass.

We initially trusted them because family friend din sila ng one of my colleagues, which is probably why naging masyado kaming comfortable with the arrangement.

We're just trying to understand how situations like this are usually handled. If alam mo kung saang subdivision nakatira ang isang tao pero hindi mo alam ang exact address nila, paano usually hina-handle ang pagpapadala ng demand letter? And if umabot sa small claims, paano naman kaya ang service of summons kung wala kaming exact residential address?

We're also unsure kung puwede bang tanggapin or i-forward ng subdivision administration ang demand letter without violating any data privacy rules.

We have the signed contract, billings, correspondence regarding payment, and records showing that the work was delivered. Gusto lang sana naming make sure na maayos ang documentation namin and that we're taking the proper steps moving forward.

Please be kind. Lesson learned talaga for us, but ₱700k+ is a significant amount for a small design practice, and we don't want to simply let it go.

Thank you!

Hi everyone. I’m posting because this involves an ongoing dispute with a client. Please be kind! we’re genuinely looking for advice on what steps we can take.

We have a client who hired us for a design service project last year. We have a signed contract, although unfortunately, we did not have it notarized.

The client has not fully paid us, and the outstanding amount has now reached around ₱700,000 including interest. Previously, they would still tell us that they would pay, but since April 2026, we have not received any meaningful response or payment from them.

We already consulted a lawyer. We were advised that this would likely fall under small claims, and that hiring a lawyer is not required for the actual filing. Our lawyer also tried to help us demand payment through email, but the client did not respond.

Our main problem now is serving a formal demand letter.

- We know the subdivision where they live, but we don’t know their exact house/address. We previously tried to leave a demand letter with the subdivision administration, but they refused to accept it. They said they did not want to get involved and mentioned the Data Privacy Act.
- The client comes from a politically influential family in our area, so we’re also hesitant to go through the barangay because we’re worried that we might be the ones intimidated or harassed instead.

We trusted them initially because they are also a family friend of one of my colleagues, which is why we unfortunately became too comfortable with the arrangement.

For those who have experienced something similar:

1. How can we properly serve a demand letter if we don’t know the client’s exact address?
2. Can we ask the subdivision administration to accept/forward the letter, or is the Data Privacy Act actually an issue here?
3. If we eventually file a small claims case, how does service of summons work if we don’t have the exact address?
4. Is there anything else we should be doing now to document our attempts to collect the debt? We already have the signed contract, billings, correspondence, and records of the work that was delivered.

We would really appreciate practical advice from anyone who has gone through a similar situation in the Philippines. Please be kind lesson learned na talaga for us, but ₱700k is a significant amount for a small design practice and we don’t want to simply let it go.

Thank you!

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