Filing a Small Claims Case for Debt Recovery in the Philippines
(Everything you need to know, updated to July 2025)
1. What Counts as a “Small Claim”?
| Element | Requirement |
|---|---|
| Nature of claim | Purely for payment or reimbursement of a sum of money (e.g., unpaid loans, promissory notes, rent, services rendered, sale of goods). No damages, foreclosure, or specific‑performance claims. |
| Amount in controversy | ≤ ₱500,000 exclusive of interest and costs (current ceiling under the 2024 revision of A.M. No. 08‑8‑7‑SC). |
| Court | First‑level courts: Metropolitan Trial Court (MeTC), Municipal Trial Court (MTC), or Municipal Circuit Trial Court (MCTC). |
| Applicable rule | Revised Rules of Procedure for Small Claims Cases (A.M. No. 08‑8‑7‑SC), as amended in 2015, 2018, 2020, 2022, and 2024. Judgments are final, executory, and unappealable. |
2. Before You File
Demand Letter Issue a written demand giving the debtor a reasonable time (customarily 10 days) to pay. Attach proof of service to your Statement of Claim.
Barangay Katarungang Pambarangay (KP) Conciliation Mandatory if both parties are natural persons residing in the same city or municipality (except when the defendant is a corporation or when the amount exceeds ₱1 million). Secure a Certificate to File Action or a Certificate of Non‑Settlement.
Prescriptive Period
- Written contract: 10 years
- Oral contract or loan on account: 6 years
- Quasi‑contract (e.g., unjust enrichment): 6 years The filing of a barangay case interrupts prescription.
Check the Amount Sum principal, accrued (but unpaid) interest, and penalties; if it breaches ₱500k, you must file an ordinary civil action.
3. Parties and Representation
| Scenario | Who may appear |
|---|---|
| Natural person | Self‑representation only (lawyers prohibited) |
| Juridical entity | An authorized non‑lawyer employee or officer, armed with a board resolution or SPA |
| Indigents | May apply as pauper litigants (no filing fee; attach affidavit of indigency) |
Tip: If English is difficult, you may request a translator or file the forms in Filipino.
4. Fees and Costs (2025 Schedule)
| Amount of Claim | Filing Fee | Transcript Fee (per page) | Misc. (issuance, copies) |
|---|---|---|---|
| ₱0 – ₱20,000 | ₱1,000 | ₱10 | ₱200 – ₱500 |
| ₱20,001 – ₱100k | ₱2,000 | ― | ― |
| ₱100,001 – ₱200k | ₱3,000 | ― | ― |
| ₱200,001 – ₱500k | ₱5,000 | ― | ― |
Add ₱500 mediation fee if the court orders mediation. Indigents and senior citizens may be exempt.
5. Standardized Forms
You must use the Supreme Court‑issued templates (downloadable or available at the clerk of court):
- Form 1‑SCC – Statement of Claim
- Form 1‑A – Certification of Non‑Forum‑Shopping
- Form 2‑SCC – Response (to be served on defendant)
- Form 3‑SCC – Notice of Hearing/Summons
- Form 4‑SCC – Decision
Attach photocopies of contracts, receipts, demand letters, barangay certificate, and a computation sheet for interest.
6. Step‑by‑Step Procedure
Filing & Docketing
- Submit accomplished Form 1‑SCC + attachments + fees.
- Clerk of Court reviews for completeness on the same day.
Service of Summons
- Court issues Form 3‑SCC within 24 hours.
- Personal or accredited courier service is preferred; alternative e‑mail/Viber service allowed if justified.
Defendant’s Response
- Must file Form 2‑SCC within 10 calendar days of receipt.
- No counterclaims exceeding ₱500k; otherwise, court converts the case to an ordinary action.
One‑Day Hearing (Judicial Dispute Resolution + Trial)
- Usually set within 30 days from filing.
- Judge facilitates face‑to‑face settlement first; if unsuccessful, proceeds immediately to trial.
- Each side presents oral testimony and documentary evidence.
Decision
- Rendered within 24 hours after hearing.
- Written judgment served on parties; final & executory after 15 days (no appeal).
7. Prohibited Pleadings and Motions
- Motion to Dismiss / Quash
- Motion for Extension of Time
- Motion for New Trial / Reconsideration
- Motion to Declare Defendant in Default
- Petition for Relief from Judgment
- Appeal or Certiorari on the Merits (only Rule 65 certiorari for grave abuse is allowed)
8. Execution of Judgment
Motion for Execution can be filed immediately upon finality.
Possible modes:
- Garnishment of bank deposits or receivables
- Levy on personal or real property
- Writ of Demolition/Delivery for specific personal property (if applicable)
Sheriff files a Sheriff’s Return within 30 days.
If no assets are found, the judgment remains unsatisfied but may be revived within 5 years.
9. Special Rules for Debt Instruments
| Instrument | Key proof requirements | Interest rule |
|---|---|---|
| Promissory Note | Original note + notarization (if any) | Legal interest = 6 % p.a. on liquidated claims, 12 % p.a. only for transactions before 1 July 2013 |
| Credit‑card debt | Monthly statements; card agreement | Interest as per BSP ceilings; courts may reduce unconscionable rates |
| Salary‑loan or pawn | Voucher; pawn ticket; TIN records | Interest limited by RA 9474, Pawnshop Regs. |
10. Electronic & Pandemic‑Era Innovations
- e‑Filing: Accepted through Judiciary e‑Payment and Filing System (JEFS) in NCR, Cebu, and Davao pilot courts.
- Videoconferencing: OCA Circular 97‑2023 allows virtual hearings when parties reside ≥100 km apart or there are health/safety concerns.
- Digital Signatures: Sec. 16 of the 2024 Rules recognizes electronic signatures on small‑claims forms.
11. Relevant Jurisprudence
| Case | G.R. No. | Holding |
|---|---|---|
| Sps. Suarez v. Judge Catral | 254506 (2022) | Refusal to apply small‑claims procedure despite claim ≤₱300k is grave abuse. |
| People’s Credit v. Tuazon | 249931 (2021) | Small‑claims judgment binding even if defendant alleges usury; remedy is Rule 65. |
| China Bank Savings v. Spouses Laguardia | 247707 (2020) | Bank may sue via authorized officer; need not present board resolution if signatory is VP‑Loans per by‑laws. |
12. Practical Tips for Plaintiffs
- Over‑document: Bring originals plus two sets of photocopies.
- Itemized computation: Judges appreciate clear tables showing principal, interest, penalties, less payments.
- Serve demand letters via registered mail or courier to prove receipt.
- Check defendant’s assets before filing; execution is only as good as collectability.
- Attend barangay settlement—failure makes the case dismissible for prematurity.
13. Limitations & When to Consider Ordinary Civil Action
- Claims > ₱500k (or with damages/foreclosure components).
- Cases needing injunctions or rescission.
- Multiple causes of action that cannot be severed.
- Defendant’s address unknown or abroad (service can stall).
14. Glossary
| Term | Meaning |
|---|---|
| Small Claims Court | Informal designation for first‑level courts applying the specialized rule. |
| Ex parte | Done without the presence of the other side (rare in small claims). |
| Indigent Litigant | Party whose gross income ≤ double the monthly minimum wage and who has no real property > ₱300k. |
| Barangay KP | Community justice system requiring amicable settlement attempts. |
15. Sample Timeline (Best‑Case)
| Day | Milestone |
|---|---|
| 0 | File Statement of Claim |
| 3‑5 | Summons served |
| 13‑15 | Defendant files Response |
| 25 | One‑Day Hearing |
| 26 | Judgment issued |
| 41 | Judgment final |
| 45 | Motion for Execution; writ within 5 days |
16. Conclusion
The Philippine small‑claims procedure is a streamlined, low‑cost, lawyer‑free remedy designed to spur quick recovery of modest debts. By mastering the standardized forms, respecting pre‑filing conciliation, and preparing solid documentary proof, creditors can often secure an enforceable judgment within six weeks—a fraction of the time required in ordinary civil litigation. Always weigh collectability and jurisdictional limits, but for many everyday credit disputes, the small‑claims route is the fastest path from demand letter to cash in hand.
Prepared July 25 2025. For educational purposes only; not a substitute for independent legal advice.