Debt Recovery




How to collect a debt without needing a lawyer

Have you ever lent a measly amount of money to a friend, colleague, businessman or even just to anyone who is in dire need for daily sustenance? But, by the time you attempted to collect the money, you find it very stressful.

The stress piles up when you realized that engaging the services of a  lawyer is pricier than the amount to be collected from the borrower.

Your desperation leads you to consider taking the law into your own hands, putting yourself in a perilous circumstance of being vulnerable to getting jailed.


Being informed and knowing that remedies are made available to you will lift the clouds and will send hopes, that yes, you can collect a monetary obligation without need of a lawyer.

Consider yourself fortunate for having browsed this section. If you are one of those luckless, ignored and unappreciated lenders, this writer will lead you to the right direction.

What are Small Claims Cases?

The Supreme Court of the Philippines developed a rule of procedure for collecting a debt without getting a lawyer.

However, the amount to be claimed by the lender should not exceed a certain threshold as the high court ordered.

To date, the cap is increased to PHP 400,000.00.



1. CHECK AMOUNT. Check total amount of your claims, exclusive of interests and costs. Note that the threshold is now at PHP 400,000.00. If your claims do not exceed such an amount, then you may file under this Rule.

2. FILE IN PROPER COURT AND VENUE. The claims should be filed with the Municipal Trial Court (MTC) or Municipal Trial Court in Cities (MTCC) or Municipal Circuit Trial Courts (MCTC). While venue or location of the court depends upon where you or your borrower lives.

3. FILING WITH PROOF OF LOAN. Go to the Office of the Clerk of Court and fill-up necessary forms for filing. Make sure to make proof of loan/transaction and necessary identification cards are available on hand.

You need to provide:

(a) Information for the Plaintiff (You/Creditor)

(b) Statement of Claim

(c) Verification and Certification of Non-Forum Shopping

Proof of loan/transaction:

(a) Promissory Note

(b) Demand Letter

(c) Contract Signed by the defendant or respondent (debtor)

(d) Other sets of evidence


5. WAIT FOR RESPONDENT TO ANSWER WITHIN TEN (10) DAYS FROM RECEIPT OF COMPLAINT. The court will serve summons to the respondent ordering the respondent to file a Verified Response to the Complaint within a non-extendible period of ten (10) days from receipt of summons.

6. CHECK THE DATE OF THE HEARING AND BE PRESENT, otherwise the case will be dismissed.

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Atty. Zzar is a legal officer of a bank in Cebu City, handling collection cases is one of his strengths.


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