SMEs urged to file their own collection cases at Small Claims Court

debt collection

Business owners, including small-scale entrepreneurs, can themselves file their own credit and collection cases with the Small Claims Court, rather than hire lawyers to file their cases for them and in the process spend substantial amounts on professional fees.

The Philippine judicial system now has a Rule of Procedures for Small Claims Cases which allows any business or individual to file a case against someone who owes them money.

The rule of procedure was set up through SC En Banc Resolution dated October 27, 2009.  Its rationale is to make claims for P100,000 or less be heard in a quick and inexpensive manner through a simple and informal procedure, where only the parties appear at the hearing. i.e.,  in the absence of lawyers.  The parties themselves will present their case, speaking even in their own dialect.

A  businessman with a collection case to file can appear as his own lawyer and secure a final decision within the day. It does not allow debtor appeals in higher courts and makes the judge’s decision immediately executory.

Click here for the procedures for filing a case in the Small Claims Court.

Those who need more guidance in going through the procedure can attend a special seminar workshop to be conducted by Global Best Practices at the EDSA Shangri-La Hotel on August 5, at 9:00 – 5:00 p.m.

Course director and principal lecturer will be Atty. Christian G. Villasis, Chairman of the Committee on Experts in Remedial Law of the University of the Philippines Law Ceter, 2013-2013.

For registration details, call 842 7148 or visit

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