Collecting Money Through Small Claims Court

What Counts as a Small Claim

A small claim is a purely civil case (a private case, not a crime) asking only for payment or reimbursement of money, worth no more than ₱1,000,000 not counting interest and costs. The Supreme Court's 2022 Rules on Expedited Procedures in the First Level Courts raised the limit from ₱400,000 (₱300,000 in municipal trial courts) to ₱1,000,000 and folded the old small claims rules into one set of rules.

Typical claims are money owed under:

• a loan or other credit arrangement, including a Promissory Note;
• a lease, such as unpaid rent;
• a contract for services;
• a sale of personal property, meaning things other than land (for the price, not to get the thing back).

You can also use it to collect money agreed in a barangay settlement (amicable settlement) or ordered by the barangay (arbitration award). If you want something other than money, such as getting a property back or evicting a tenant, small claims is not the right case.

Before You File

1. Send a demand. The Statement of Claim asks whether you demanded payment before filing, how and when. A written Demand Letter with proof that it was received is the clearest evidence.
2. Go to the barangay if required. If you and the other person are individuals living in the same city or municipality, you usually need a Certificate to File Action from the barangay (its go-signal that you may go to court). See barangay conciliation.
3. Gather your proof. The contract, Promissory Note, receipts, checks, messages, the Demand Letter and its proof of receipt.

The Forms

The Supreme Court publishes the small claims forms, with Filipino and other translations. The main ones are:

• Form 1-SCC, the Statement of Claim, which includes the verification and certification against forum shopping (sworn statements that your claim is true and that you have not filed the same case elsewhere). You sign it under oath before a notary public or an officer who can administer oaths, such as the Clerk of Court.
• Form 1-A-SCC for more people suing (plaintiffs) or being sued (defendants), and Form 1-B-SCC, information for the plaintiff.
• Form 7-SCC, a Special Power of Attorney, if a non-lawyer representative will appear for you with a valid reason.

Attach certified copies of your documents and the affidavits of your witnesses. The rules say that if you do not attach the required affidavits, the case is dismissed right away. Make one set of copies for each defendant, plus your own.

Filing and Fees

File with the first-level court (Metropolitan, Municipal, Municipal in Cities, or Municipal Circuit Trial Court) where you or the defendant lives, following the regular rules on where to file (venue). If the plaintiff is a bank or lender with a branch where the defendant lives or does business, it must file there.

You pay filing (docket) and other legal fees under Rule 141 of the Rules of Court. The amount depends on the size of your claim, so the Clerk of Court computes the fee when you file. People who qualify as indigent (very poor) can ask to be excused from paying docket fees.

The Hearing and Decision

• The court sets the hearing no later than 30 days from filing (60 days if a defendant lives or does business outside the court's judicial region).
• The defendant files a Response with their side and evidence.
• Parties appear in person. No lawyer may appear for a party at the hearing, unless the lawyer is the plaintiff or defendant. A non-lawyer representative may appear for a valid cause with a Special Power of Attorney.
• The judge first tries to get you to settle. If you do, the settlement is put in writing.
• If not, the judge hears both sides the same day and decides within 24 hours after the hearing ends.
• The decision is final, executory and unappealable: it can be enforced right away and cannot be appealed. If the loser does not pay, you file a motion for execution (asking the court to enforce it).

If the plaintiff does not appear, the claim is dismissed. If the defendant does not appear, the court decides based on what is on file.