Small Claims Court is designed for fast, inexpensive resolution of straightforward money disputes—think unpaid loans, bounced checks, overdue invoices, or security deposits that were never returned. Below is a practical, end-to-end guide to help you assess if your case qualifies, prepare the papers, file correctly, and collect after judgment.

1) What Counts as a “Small Claim”?

A small claim is a civil action purely for a sum of money not exceeding ₱1,000,000 (exclusive of interest, damages, attorney’s fees, and costs). Typical examples:

Unpaid personal or business loans, promissory notes, IOUs
Non-payment for goods sold or services rendered
Bounced checks/insufficient funds
Unreturned deposits/advances (e.g., rentals, suppliers)
Enforcement of a Barangay amicable settlement or Barangay arbitration award involving a money claim within the cap
Liquidated damages under a contract

Not covered: claims for recovery of property, ejectment/possession of real property, actions for injunction or specific performance (unless the relief is purely monetary), or claims exceeding ₱1,000,000 (again, excluding interest and costs for the purpose of the cap).

2) Who May File and Who May Appear

Natural persons (individuals) may sue and must appear personally at the hearing. Lawyers cannot appear for parties in small claims (the process is pro-se), except a party who is a lawyer may, of course, appear for themself.
Sole proprietors sue in their personal name (as business owner).
Juridical entities (corporations, partnerships, cooperatives) may file through an authorized representative who must appear personally at the hearing and present a Board Resolution/Secretary’s Certificate or Partnership Resolution authorizing them to represent and to settle.
Assignees of claims (e.g., if a receivable was assigned to you) may file if the assigned claim qualifies.

3) Where to File (Venue) and Which Court

File in the first-level court having jurisdiction over the area, i.e., the Metropolitan Trial Court (MeTC), Municipal Trial Court (MTC/MTCC), or Municipal Circuit Trial Court (MCTC).

Venue (as a personal action) is generally at the plaintiff’s residence or the defendant’s residence, at the plaintiff’s option. If there are multiple defendants, you can file where any principal defendant resides. When enforcing a Barangay settlement/award, venue usually follows where that settlement/award arose or where the defendant resides.

Practical tip: Check the precise court branch for the city/municipality and confirm the filing window and cashier cut-off times.

4) Do You Need to Go to the Barangay First?

The Katarungang Pambarangay (Barangay conciliation) system applies when all parties are individuals residing in the same city/municipality, subject to statutory exceptions (e.g., one party is a corporation or government; parties live in different cities/municipalities and do not agree to conciliate; there’s an urgent legal remedy; among others).

If required, secure a Certification to File Action (CFA) from the Barangay before you go to court. Courts may dismiss a case filed without the necessary CFA.

5) Prescriptive Periods (Deadlines to Sue)

File before the claim prescribes:

Written contract: generally 10 years
Oral contract, quasi-contract, or on account: generally 6 years
Quasi-delict (tort): generally 4 years

These are general rules; specific laws or facts can change the clock (e.g., acknowledgments or partial payments can interrupt prescription).

6) Documents and Standard Forms

Small claims use Supreme Court–issued ready-to-fill forms, typically:

Statement of Claim (Form 1-SCC) with Verification and Certification against forum shopping
Information for the Court (Form 1-A-SCC) (court intake data)
Summons/Notice of Hearing (issued by the court)
Response (Form 3-SCC) (for the defendant)
Affidavit of Witness (Form 5-SCC) and Judicial Affidavit style attachments, if any
Subpoena Request (if you need a witness)
Motion to Litigate as Indigent (if seeking fee waiver)
Special Power of Attorney (if an individual authorizes a representative for filing; note: the party still needs to appear personally at hearing)
Board Resolution/Secretary’s Certificate (if the party is a corporation/partnership/cooperative)

Evidence to attach (photocopies for filing; bring originals to the hearing):

Contracts, promissory notes, invoices, purchase orders, delivery receipts
Checks and bank return memos (e.g., “DAIF/Drawn Against Insufficient Funds”)
Statements of account, ledgers
Demand letters and proof of service (registered mail receipts, courier tracking, screenshots)
Barangay CFA or amicable settlement/award (if applicable)
Government IDs, business permits/DTI/SEC papers (to prove identity/authority)
Any admissions/acknowledgments, text/email threads (printouts)

Keep exhibits labeled (Exh. “A”, “B”, etc.), paginate them, and reference each in your Statement of Claim so the judge can quickly see how they prove the debt.

7) Filing Fees and Indigency

Courts collect legal fees and sheriff’s service fees upon filing. The exact amount depends on the claim value and the Judiciary’s current fee schedule. If you cannot afford the fees, file a Motion to Litigate as Indigent with a sworn statement of assets/income and supporting proof. If granted, fees may be waived or deferred.

8) How the Case Proceeds—Timeline & What to Expect

Filing & Docketing Submit your Statement of Claim with attachments and pay the fees (or file indigency motion). The clerk dockets your case and forwards it to the judge.
Issuance and Service of Summons The court issues a Summons/Notice of Hearing, typically setting a single hearing date. Service is made by the sheriff/process server (or via allowed alternative modes if necessary).
Defendant’s Response The defendant files a Response (Form 3-SCC), usually within 10 calendar days from receipt of summons and serves a copy on you. Counterclaims (still within the ₱1,000,000 cap and monetary) may be asserted.
One-Day Hearing; No Lawyers Arguing On the hearing date, both parties must appear in person (or, for entities, through authorized representatives). The judge will facilitate settlement first; if no settlement, the judge proceeds with a simplified, informal presentation of evidence.
- Rules of evidence are relaxed. Written affidavits and documents are common.
- The judge may ask questions directly; you should be prepared to explain your claim succinctly and identify the key exhibits supporting it.
Judgment The court generally aims to render judgment on the same day after the hearing or very shortly thereafter. Small claims judgments are final, executory, and unappealable.
Post-Judgment Collection (Execution) If the debtor does not pay voluntarily, file a Motion for Execution. The court may issue a Writ of Execution authorizing the sheriff to garnish bank accounts/receivables or levy on personal property, following the Rules on Execution.

9) Computing the Amount to Claim

For the ₱1,000,000 cap, exclude interest, damages, attorney’s fees, and costs. You may still claim them (if contract/law allows), but they don’t count toward the cap.

Interest:

If the contract sets an interest rate, courts enforce lawful rates.
If none is stipulated, legal interest (commonly applied at 6% per annum) may be awarded from default or filing, depending on the nature of the obligation.

Liquidated damages/penalties in a contract may be claimed, subject to reasonableness and the court’s power to reduce unconscionable penalties.

10) Prohibited Pleadings & Motions (Streamlining)

To keep the process simple, the following are generally not allowed in small claims:

Motions to dismiss (except on very limited grounds like lack of jurisdiction or improper venue)
Motions for bill of particulars
Motions for new trial/reconsideration
Demurrers to evidence
Petitions for relief from judgment
Appeals
Discovery (depositions, interrogatories, requests for admission/production), unless the court specifically allows limited measures compatible with the summary nature of proceedings

If a defense like payment, prescription, or lack of cause of action exists, it should be stated in the Response and proven at the hearing.

11) Settlement Options and Enforcement of Barangay Outcomes

Judges actively encourage amicable settlement on the hearing date (e.g., structured payment plans). Any settlement is reduced to writing and approved, making it enforceable.
If you already have a Barangay amicable settlement or arbitration award (Pangkat) involving a money obligation not exceeding ₱1,000,000, you can file a small claim to enforce it, attaching the certified settlement/award and proof of non-compliance.

12) Practical Strategy: Building a Strong Small Claim

Paper trail is king. Organize documents chronologically; highlight the provision creating the debtor’s obligation and your proof of performance (e.g., delivery receipts/service completion).
Send a clear demand letter before filing. It’s not always legally required, but it:
- Shows you tried to settle;
- Helps start interest/penalties running (where applicable);
- Often prompts payment without litigation.
Quantify confidently. Provide a simple computation sheet (principal + contractual/ legal interest + penalties, if any, up to filing). Keep the principal clearly separate for the cap.
Anticipate defenses. Common ones: payment, lack of consideration, forged signature, no demand, prescription. Bring evidence to counter each.
Witnesses. If someone needs to authenticate a document or explain delivery/acceptance, attach their Affidavit of Witness and ensure they’re available on the hearing date.
Be concise at hearing. Prepare a 3–5 minute narrative: obligation, breach, amount due, exhibits. Judges appreciate clarity.

13) After You Win: Turning a Judgment into Cash

Ask for voluntary compliance—some courts will encourage immediate payment at hallway settlements right after judgment.
If unpaid, file a Motion for Execution (no long briefs needed).
Identify assets to help the sheriff: bank branches, employer (for wage garnishment), accounts receivable, vehicles/equipment.
Explore compromise on installments if lump-sum payment is unrealistic—just make sure it’s in a court-approved agreement for easy enforcement if there’s default.

14) Costs, Risks, and Alternatives

Court fees and service fees are relatively modest, but not zero; indigent applicants may seek fee waiver.
You invest time to prepare, file, and appear personally; if the debtor is hard to find or asset-poor, collection may still be a challenge even after winning.
Consider demand + mediation, Barangay conciliation (if applicable), or installment settlements before filing. These can save time and preserve relations.

15) Quick Filing Checklist

Claim is purely for money ≤ ₱1,000,000 (principal only for the cap)
Within prescriptive period (check 10/6/4-year benchmarks)
Barangay CFA obtained if required (individuals in same city/municipality, no exception applies)
Statement of Claim (Form 1-SCC) completed, verified, with forum-shopping certification
Supporting documents attached (contracts, invoices, proof of delivery/performance, demands)
IDs and (for entities) Board Resolution/Secretary’s Certificate
Affidavits of witnesses (if needed)
Filing fees ready or Motion to Litigate as Indigent prepared
Correct venue (first-level court where plaintiff or defendant resides)
Calendar the hearing date from the Summons; ensure personal appearance

16) Frequently Asked Questions

Can I bring a lawyer? You may consult a lawyer outside court, but lawyers cannot appear as counsel in small claims hearings. You must appear personally (or through your authorized company representative).

What if the debtor ignores the case? If properly served and absent at hearing, the court may render judgment based on your evidence (default-like scenario under small claims rules).

Can I appeal if I lose? No. Judgments are final, executory, and unappealable. A narrow and extraordinary Rule 65 petition (certiorari) may be available only for jurisdictional or grave abuse errors, not to re-weigh facts.

What if my claim is slightly over ₱1,000,000? You may file a regular civil action instead. Splitting a single cause of action into multiple small claims to fit the cap is not allowed.

Can I claim interest and penalties? Yes, but the cap is computed without them. The court may award contractually agreed interest/penalties if lawful, or legal interest when appropriate.

17) Model Outline for Your Statement of Claim

Parties & Relationship (e.g., supplier–buyer; lender–borrower)
Contract/Transaction (attach contract, POs, invoices)
Performance & Delivery (attach DRs, service reports)
Breach/Default (missed due date, bounced check; attach bank return)
Demand & Non-Payment (attach demand letter + proof of service)
Amount Due (Principal) + computation of interest/penalties (separate tables)
Jurisdiction & Venue Allegations
Barangay Compliance/Exemption (attach CFA or explain exception)
Prayer (principal, interest, penalties, costs, other just relief)

Final Notes

Keep everything simple, organized, and well-documented—that’s the spirit of small claims.
Check your local court’s frontline service notes for any branch-specific filing practices (e.g., number of copies, stapling/fastening, window hours).
This guide is general information for the Philippine setting. For nuanced scenarios (e.g., complex corporate authority, cross-border debtors, unusual interest clauses), consider obtaining tailored legal advice before you file.