How to File a Case Against People Who Owe You Money


Are you in a constant dilemma where you feel nervous whether or not a person will pay money they owe you? Do you know someone, maybe a friend who is worried whether or not they’ll be paid by a debtor?

Even businesses, say, a sari-sari store, where the store owner is troubled with the high credit that a friend of theirs accumulated and that “friend” is constantly avoiding them just for them not to be made to pay?

Worry not because this can actually be solved through the Small Claims Court. Former Supreme Court Chief Justice Reynato Puno imposed the Rule of Procedure for a Small Claims Case. With its name, this allows individuals and businesses to file a case against people or other businesses who owe money from them.

So, if you find yourself in this situation, don’t fret. You can actually make people who owe you money, pay you! The process is simple and it doesn’t require knowledge about specific rules and laws of the Republic, you just have to know what this specific set of rules are and you’re good.

Do you need to hire a lawyer for this?

Surprisingly, you don’t even need a lawyer. However, it would be helpful to have one just in case it gets escalated to a more serious level.

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One thing to take note of is that according to the procedure and the Supreme Court (SC), the money to be claimed should not exceed Php200, 000.00 and this was as of the year 2016. That amount should already include penalty fees and interests (if there are any).

What if the money owed is more than that amount?

If the people who owe you money exceeds that specific amount, the plaintiff would need to be settled in regular court. Should the amount be less than that, you can definitely file the case through the Small Claims Court and here’s how you can do that:

How do you file a Small Claims Case in the Philippines?

The procedure is simple and manageable. As a matter of fact, it can be done by yourself without help from any people.

1. Proceed to either one of the following places to file the case you wish to file:

  • 1st level court of the city where your debtor lives; or
  • 1st level city court of where you reside

What are first level courts?

If you haven’t heard such a term, then by definition, first level courts are the lowest in the hierarchy. Every city or municipality has such a court where anyone can proceed to if they have concerns.

The following are the considered first level courts here in our country:

  • Municipal Trial Courts in Cities;
  • Municipal Circuit Trial Courts;
  • Metropolitan Trial Court; and
  • Municipal Trial Court

2. Once you’re in any of those locations, you would have to go to the Office of the Clerk of Court. You’d be asked to fill out the following forms for documentation and record:

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  • The statement of claim
  • Certification of Non-Forum Shopping; and
  • Information for Plaintiff

Once that you fill those out, you’d also have to complete a Verified Statement of Claim. This is a document which certifies and verified that all of the information you provided was correct and that your case is not being doubled. Meaning, you’re not filing the same case in any other court.

3. After finishing those, you can now submit the proof of loan. When you lend money to other people, in order to provide proof, you’d need documentation. This is one key in filing a case against people who owe you money. Any of the following should be sufficient:

  • Promissory notes
  • Receipts
  • Bank deposit slips
  • Signed contract by the debtors or defendants
  • Demand letter with the proof of delivery and/or receipt (latest)
  • Affidavits of  witnesses

They will be asking you to submit these documentations for proof of your claim. Moreover, this will back-up the case that you are about to file and in order for the case to be effective. Without it, you won’t be able to proceed with the filing. Word of mouth and witnesses aren’t enough proof, you need documentation.

4. The last step is the payment. You’d have to settle a small amount to successfully file the case. Fitz Villafuerte, an entrepreneur, said that a friend of his (a lawyer) said that it’s usually around the price of Php1, 250.00. It could be less than that, it could be more than that. For you to have the exact amount, proceed to any of the first level courts and inquire about it in the Office of the Clerk of Court.

Once you’ve done your part, it’s up to the court and then the case will be assigned to a judge through a raffle.

If they find that there’s truth in the case, the debtors/defendants will be asked to be Summoned or be given Information for the Defendant, Notice of Heating, Response Form, and other documents for the case.

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Afterward, the plaintiff will be informed and will also be sent a Notice of Hearing. In that will be the scheduled date and time of the appearance in Court.

While in the Settlement Discussion, the two (2) parties (you and debtor/defendant), will have a chance to settle the case in mediation of the judge.

What if no agreement or settlement is formed?

In the event that no agreement is formed, the case will automatically be moved to court hearing which should occur on the same day. During the hearing in regular court, the judge will now make his or her decision as regards the case.

NOTE: The judge’s decision is FINAL. It’s non-appealable and it imposes immediate executory.

So, if you’re a defendant/debtor, it’s better to settle the case or the agreement in Small Court Claims for it not to move to regular court hearing.

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Who knew that this type of law is existent? Who knew that you can actually file a legal case against people who owe money from you? If you think that the person who owes you money is constantly avoiding you; if the person/people/businesses are not being at par with payments, then you should think about filing a case in Small Claims Court about them.

Need help in charging people who owe you money? Are you constantly being dismissed or ignored by the people you lent money to? Fear not because even the Small Claims Court can be of assistance to you.

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7 thoughts on “How to File a Case Against People Who Owe You Money”

  1. hello po,paano po if nagpautang ka po ng pera at ang umutang pi ng pera ay napagusapan at nagkasundo pi na may interest po o tubo ang pera nasa 100k po mahigit ang utang nya wla pa pong interest na kasama.tapos di nya po tinupad usapan namin mag kalahating taon na po.ang napagkasunduan po eh magbigay po sya ng porsyente kada linggo.wla naman po.tas sabi po namin eh kahit yung puhunan na lng kada linggo magbigay ka para mabawasan pa unti unti wla din po.paano po yan.slmat po sa advice.

  2. Hello po I need a advise lang po nag pa utang po ako NG 100k plus Peru verbal lang ang usapan wla kaming kasulatan… Tanong ko lang kung papanigan kaya ako NG court nyan… May mga witness naman ako na nag bigay ako NG pera sa taong pina utang ko thanks po.

  3. Hi po nangutang po aq s isang online..Nkaapt po aqng loan at sa png apat po di q npo nhulugan gawa ng ngkproblema po aq nkikiusap nmn po aq n kahit unti unti mgbbyad po aq..Kaso d saw po matatapos ang utang q kasi po 2.5percent po daily ang tubo qng ganon po pano aq mkkbayd qng lumalaki ang halaga ng utang q..Di po aq mkkahon s utang.

  4. Hello po good day, may nangupahan akin po. tapos hanggang ngayon hindi naka pagbayad lahat mga 90k na po. Ang contract namin expired na last month. tanong ko lang po kung ano magandang gagawin para makapagbayad siya. salamat….

  5. Ako may pina utang kapitbahay ko mga paninda nasa abroad asawa ng hindi makabayad sabi ihanap ko maloloanan at xa mag babayad para makabayad ang nang yari nadoblehan pa ako ako pa rin ang nag hulog ng loan tapos nalaman ng asawa mga pinag gagagawa naghiwalay kuno kaya nd panagutan ng asawa utang nya nung dumating na galing abroad gang ngayon 27,000 patuloy kong nererenew sa tubuan kada tatlong buwan 4,800 ang tubo mag two years na hindi pa rin ako makalawa dun sa tubuan dinala ko sa baranggay ala naman sisipot at nag tatago sabi ng mga anak nasa abroad na daw pero hindi nmn maka usap


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