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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
FREE GUIDE REPORT
How to Collect Debts and Get Paid: A complete step by step credit and collections guide for
small business in the Philippines
GLORIA T. ALPARO
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Disclaimer and Terms of Use Agreement
The information provided in this eBook is for general informational purposes
only. All information on this material is provided in good faith, however the
author does not make any representation or warranties of any kind, express
or implied, regarding the accuracy, adequacy, validity, reliability, availability
or completeness of its contents.
The use of this information should be based on your diligence, and you agree
that the author of this eBook is not liable for any success or failure of your
business that is directly or indirectly related to the use of this information.
Therefore, you are taking full responsibility for your actions if you wish to
apply ideas contained therein.
The author disclaimed any warranties (express or implied), merchantability,
or fitness for any particular purpose. The author shall in no event be held
liable to any party for any direct, indirect, punitive, special incidental or other
consequential damages arising directly or indirectly.
Accordingly, before taking any actions based upon such information, the
author encourages you to consult with the appropriate legal professionals or
licensed attorneys. The author does not provide any kind of legal advice.
The use or reliance of any information contained on this eBook is solely at
your own risk.
Copyright © 2019 https://gloalparo.com. All Rights Reserved.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Hello Kababayan!
Are you a business owner? Are you having difficulty collecting from your
customers or clients?
Do you have long overdue Accounts Receivables? Do you want to know the
Best Practices and strategies in collecting receivables?
Then, you need to read this:
In this eBook, “How To Collect Debts and Get Paid” FREE GUIDE REPORT
I will reveal to you, the best practices and strategies in collecting Account
Receivables.
By the way, What’s the Importance of Accounts Receivables in the business?
Importance of Accounts Receivable
Accounts receivable is among the largest and most liquid assets on the
books of most companies. A properly managed accounts receivable
portfolio can expedite cash flow and support corporate cash requirements.
The ultimate goal of accounts receivable is to increase working capital.
Companies have traditionally viewed accounts receivable as a basic
function. They are beginning to realize, however, that improving the process
can lead to significant financial gain for the company. Fewer outstanding
account balances mean fewer bad debt write-offs and enhanced profitability.
As companies that apply best practices seek to wring the most efficiency
from their accounts receivable process, they constantly evaluate their
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
systems and procedures from all angles. Not only do they explore
technological innovations, they also scrutinize the business decisions that
form the foundation of each process.
Isa sa mga biggest FEAR ng ng mga negosyante ay ang malugi ang
negosyo, at ito ang ayaw natin mangyari sa atin, Some of business owners
FAILED in their businesses may mga ilan na BANKRUPT, at isa sa mga
dahilan ay hindi naagapan ang PAUTANG or nabaun sa UTANG at hindi na
nakasurvive, isa sa mga problema ng mga negosyante kung paano singilin
ang kanilang Accounts Receivables, Halimbawa, kung ang negosyo mo ay
selling / distributor of consumer goods, karamihan sa mga distributor nag
eextend ng credit terms, para makasabay ka sa mga business competitors
mo, magbibigay ka rin syempre ng terms sa customer mo, at ang terms na
ibibigay mo sa iyong customer ay 15 days tapos babayaran ka after 30 days
or more minsan yung tseke na ibinayad sayo tumalbog pa, kapag hindi
financially stable ang company mo mababaun ka sa utang sa bangko, most
of all business owners na nakilala ko ay nag aavail lang ng loan sa banko to
finance their businesses, at ang napaka common problem is DELINQUENT
ACCOUNTS AND BAD DEBTS, may mga Customer na nagtatago na, ang
iba naman may pambayad naman pero sadyang mahirap singilin, ang iba
denideadma ka lang, ang iba naman, sila pa ang galit kapag siningil mo,
hay…… relate ka ba?
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Meron akong solusyon sa mga problema na iyan, at nais ko ishare sa iyo.
Kahit hindi ka negosyante pero nagpautang ka sa kaibigan mo kakilala,
kamag-anak, bestfriend, or kasama mo sa trabaho, pwede mo I apply ang
mga strategy na ito.
WHO AM I?
Before I reveal to you the “How To Collect Debts
and Get Paid” FREE GUIDE REPORT eBook,
I want to introduce myself. My name is Gloria Alparo,
I am a Filipina, full-time wife and a mother, currently
employed in a private company for almost 25 years,
expertise in the field of Accounting / Auditing and
Legal Officer for almost 12 years, also a business
owner of retail store for almost 13 years and author.
I have created a “How to Collect Debts and Get Paid” FREE GUIDE
REPORT eBook as a way to help other entrepreneurs, business owners
especially Filipinos, to give them a valuable information on how to implement
best practices in collecting of long overdue accounts receivables, distressed
and delinquent bad accounts to their organization, and a complete guideline
on how to win a collection case or collect debt without the need of a lawyer
by simply using the Small Claims Court before the Metropolitan Trial Court.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Why I’m qualified to teach this course.
For almost 12 years as Audit and Legal Department Head (Internal Auditor/
Legal Officer) in a private company in the country, aside from auditing works
I PERSONALLY collected and handled HUNDREDS of bad accounts and
court cases. I’ve personally won over 70 criminal and civil cases including
Small Claims Cases (BP22, Estafa & Qualified Theft Cases and Small
Claims Civil Judgment Cases); with the guidance of a legal counsel.
Based on my experiences in a Corporate world, Companies achieve their
goals by developing strategic plans and implementing control systems to
make sure their operations are proceeding according to plan. Effective
control systems also ensure that company activities comply with legal and
regulatory requirements and internal standards.
This e-book will help and guide you after done the reading, how to applied
and implement the best practices in your organization with regards to your
customers; clients; accounts receivables; credit and collection; the process
and procedure on Small Money Claims; being educated about these matters
will allow you to implement procedures based on your own preferences and
prioritize what will work for you, your business, your employees and your
customers.
I would like to share with you my effective strategies in collecting accounts
receivables, I hope you will successfully collect your receivables in your
organization by applying this strategy.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
WHAT IS MY STORY?
My story started when I was employed in a private company since 1994 upto
present, sa loob ng 25 years na pagiging empleyado at halos lahat ng
position sa accounting at audit department ay nagampanan ko na hanggang
sa, na appoint as legal officer (kahit walang background sa legal) in year
2006 and appointed as audit department head in year 2007 upto present,
Galing sa isang mahirap na pamilya nag aral bilang isang working student,
at nagtapos ng kursong Bachelor of Commercial Science major in Computer
Science graduated year 1996 at Jose Rizal College, now (Jose Rizal
University).
During my first year in college I enrolled my course as BS Accountancy dahil
ang pangarap ko noon ay maging isang Accountant, but in 2nd semester in
2nd year college, I decided to shift my course into Bachelor of Commercial
Science major in Computer Science (BCS) until I graduated in year 1996.
Nagtrabaho ako sa company 2nd year college pa lang ako, I’m working from
8am to 5pm as Admin. Clerk, then pasok sa school from 5:30 to 8:30pm.
Thankful ako dahil sa dami ng empleyado isa ako sa nabigyan ng
pagkakataon na humawak ng mabibigat na posisyon sa kumpanya, hindi
lang ako legal officer/ internal auditor, I also appointed as Corporate
Secretary and Treasurer in one of our Affiliated Company, mula noon
lumawak ang naging kaalaman ko lalo na sa paghandle ng ibat ibang klase
ng kaso, dahil ginabayan ako ng mga legal counsel ng company, at napaka
swerte ko dahil tinuruan nila ako, sa kanila ko natutunan lahat kung anu man
ang kaalaman ko ngaun, with regards in legal matters.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Nahihirapan ka ba maningil ng pautang? Hirap magbayad si customer?
May solusyon tayo diyan para masingil natin ang mga pautang sa legal na
paraan. Just follow the following steps and procedures.
Steps to Successfully Collect on a Small Business Debt
1. Second Invoice (Certified true copy or Original copy of Sales Invoice) -
The first step in collecting a debt from a customer is to send him a second
invoice or clearly marked as overdue. Every time you collect payment from
your customer, always bring the original or certified true copy of sales
invoices together with the statement of account. If the customer neglected to
pay because of a simple oversight, he may rectify the account quickly.
Invoices should be sent at 30-day intervals or it depends on the terms agreed
upon by the parties
• Statement of Account - is a detailed report of the contents of an
account. The purpose of the statement is to remind a customer of sales
on credit that have not yet been paid to the supplier.
2. Require payment by cash, check (dated or PDC), bank to bank
transactions whenever possible.
3. Encourage customers to pay sooner by offering discounts for payment
within a specific period of time. For example, you could offer a 2% discount
if an account is paid within ten (10) days rather than thirty (30) days.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
4. Discourage customers from paying late by charging interest or late fees
on delinquent accounts.
Regarding interest rate, be sure that the charging interest or late fees are
based on your written credit policy and acknowledge by your customer
before you extend a credit terms to them or make sure to consult with your
attorney first to be sure you are complying with state's usury law and
applicable laws.
5. Make a personal visit to your customer to discuss a past-due bill/
invoices or talk to your customer when he or she visits your business,
whenever possible.
6. Make a phone call to your customer about the past-due bill/ invoices in
cases where a personal visit is not possible.
7. Listen and Negotiate, listen to the customer's response and try to be
understanding while remaining firm. He may have a legitimate reason for
being late in paying the bill. Offer alternatives without conceding the debt.
For example, the customer may have had an unexpected financial situation
that forced him to postpone payment. If his payment history had been good,
a restructure of payments may be acceptable. However, if the customer has
had a history of late payments, leniency may not be the best approach.
8. Send a series of "reminder" letters to your customer if talking to him or
her personally is impractical, or if the amount owed is relatively small. The
first letter can simply be a friendly reminder. The second letter can be a
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
little more forceful. The third letter can be a "final" demand before you turn
the account over to a collection agency or to your attorney.
9. Document Everything - Few things are as important as documentation in
a small business debt collection situation. Should the debt ever lead to a
legal battle in court, your ability to point to documentation will be very helpful.
Every time you talk to a client on the phone, record the phone call and take
notes. If you send your demand letter thru mail, have a registered mail with
registry receipt or return card. Certify and copy every letter you send in the
mail. If you Save email correspondence. Log visits you make to the client’s
office or home. All of this information could prove helpful.
10. Avoid harassing the people that owe you money. This is both a good
customer service policy as well as a good legal policy. If your actions can be
considered harassing, you may wind up losing a customer as well as facing
a legal challenge. If you call your debtors, be sure not to leave more than
one message per day, and never threaten or speak ill of a debtor.
11.Hire a Collection Agency
If you have a lot of outstanding debt owed to you and you’re spending a lot
of time trying to collect on it, it may be worth your time to hire a collection
agency. Not only will this save you time and possibly allow for better results,
but it could keep you out of legal trouble.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
12. Small claims court - If you do not want to go through a collection
agency, you have the option of filing a lawsuit to get the money you're owed.
Depending upon your state, you may be able to file a claim in small claims
court to recover the money owed to your business. Small Claims Rule is a
special procedure where money claims for P400,00.00 or less are heard.
The process is quick and inexpensive, the procedure is simple and informal.
File a lawsuit. If small claims court is not an option for you, and the amount
of money is too great to hand over 50% of it to a collection agency, you may
have to file a lawsuit in order to recover the debt. There are higher costs
associated with this method, however, such as fees for attorneys as well as
court costs.
Collecting debts from customers is a balancing act for business owners.
Getting the money is important, but not offending or alienating customers is
also a goal in business. Although the specific procedures for collecting a debt
can vary, a company needs to follow several general guidelines to ensure
collection while trying to retain customers for future sales.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
How to Win a Collection Case / Collect Debt without a need of a Lawyer
The best practices guide in using the small claims court for fast and effective
collection for amounts below P400,000.
Small claims court Philippines
The Revised Small Claims Procedure was developed by the Supreme Court
to provide a simple, speedy, and inexpensive means of dispute settlement in
courts. The procedure provides simple forms, dispute settlement
procedures, and a one-hearing rule. It simplifies court procedures permitting
a more informal hearing, providing “lay person-oriented” forms throughout
the process, and dispensing with the intervention of lawyers.
Before the concept of small claims was introduced in our court system, the
Revised Rule on Summary Procedure applied to money claims not
exceeding P100,000.00 in first level courts outside Metro Manila, while
P200,000.00 in first level courts within Metro Manila, otherwise known as the
Metropolitan Trial Courts. These amounts were later increased to
P300,000.00 and P400,000.00, respectively, under Republic Act No. 7691.
In 2010, the Court authorized the implementation of the Rule of Procedure
for Small Claims Cases to all first level courts nationwide for money claims
of not more than P100,000.00. In 2015, the Supreme Court increased this to
P200,000.00 and in 2018, to P300,000.00.
Last February 27, 2019, Wednesday The Supreme Court (SC) announced
an increase in the amount covered in so-called small claims cases filed
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
before the Metropolitan Trial Courts from PHP300,000 to PHP400,000,
starting April 1, 2019.
As a consequence, money claims filed before the first level courts outside
Metro Manila were all covered by the Revised Rules of Procedure for Small
Claims Cases, whereas those filed before the Metropolitan Trial Courts were
considered either as small claims cases for claims of up to
P300,000.00, or proceeded under the Revised Rule on Summary Procedure,
for claims above P300,000.00 to P400,000.00.
Under the Revised Rules of Procedure for Small Claims Cases, courts are
mandated to resolve a case within thirty (30) days from the day the statement
of claim was filed.
What are considered as small claims actions?
They are claims where the value of the claim does not exceed Four
Hundred Thousand Pesos (P400,000.00) exclusive of interest and costs.
(a) For money owed under any of the following:
a. Contract of lease;
b. Contract of loan;
c. Contract of services;
d. Contract of mortgage;
(b) For liquidated damages arising contracts;
(c) The enforcement of a barangay amicable settlement or arbitration
award on a money claim.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Examples of small claim cases are:
a. case to collect money from a person who owes you money
(debtor)
b. case to collect payment for goods or property sold and
delivered
c. or reimbursement for property, deposit, or money loaned,
d. purely civil action for payment of money covered by bounced or
stopped check,
e. case to collect unpaid rental payments from a lessee
f. case to recover the deposit made for a lease after the
expiration of the case
g. case to collect payment for commission
h. case to collect payment for services rendered
i. case to enforce settlement agreements of money claims made
before the barangay
Where do I file my small claims case?
A small claims case is filed with the Metropolitan Trial Court,
Municipal Trial Court in Cities, Municipal Trial Court and Municipal Circuit
Trial Courts. Since this is a civil case, it must be filed in the city;
a. Where the Plaintiff (the person suing) resides; or
b. Where the Defendant (the person being sued) resides; or
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
If the plaintiff is in the business of lending, banking and similar activities, in
the city where the defendant resides, if the Plaintiff has a branch in that
city.
What is the procedure for small claims?
Step by step procedure in filing the Small Claims Case:
I – INITIATION OF SMALL CLAIMS CASES
▪ Gather all documents and evidence pertinent to the claim
Examples are:
• Contract / Agreement
• Promissory Note/ Receipts/ Affidavit of Witnesses/ Other
important documents such as checks or pictures
▪ Latest demand letter (if any), its proof of service and proof of receipt
▪ Certificate to file action from the Barangay, if necessary
▪ Special power of Attorney in case plaintiff cannot attend the hearing
▪ Secretary’s Certificate or Board Resolution authorizing you to file the
case, if you are representing a corporation, partnership, cooperative
or association.
▪ Filing of the Statement of Claim (Form 1-SCC) in duplicate
accompanied by Verification and Certification against Non-forum
Shopping, Splitting a Single Cause of Action and Multiplicity of Suits
(Form 1-A-SCC)
▪ Two (2) duly certified photocopies of the actionable document/s (or
Evidence of the Claim)
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
▪ Affidavits of witnesses and other evidence to support the claim;
▪ No evidence is allowed during the hearing which were not attached to
or submitted together with the Statement of Claim, unless good cause
is shown for its admission as additional evidence
▪ Joinder of Claims – plaintiff may join in a single statement of claim
one or more small claims against a defendant provided that the total
amount claimed, exclusive of interest and costs, does not exceed Four
Hundred Thousand Pesos (Php400,000.00)
a. Affidavits – the affidavits submitted under this rule shall state only
facts or direct personal knowledge of the affiants or based on
authentic records, which are admissible in evidence;
❖ Violation of this rule shall subject the party and the counsel who
assisted in the preparation of the affidavits, if any, to appropriate
disciplinary action. The inadmissible affidavit(s) or portion shall be
expunged from the record.
▪ The non-submission of the required affidavits will cause the immediate
dismissal of the claim or counterclaim
▪ Payment of Filing Fees:
a. Plaintiff shall pay the docket and other legal fees, unless allowed
to litigate as an indigent.
b. Motion to plead as Indigent party
(If you are unable to pay the filing fees because you have no adequate
financial means, you may file the case as an Indigent by getting Form
6-SCC and attaching the following documents):
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Affidavit of Indigency
Barangay Certificate of Indigency
City of Municipal Treasurer’s Office Certificate
Affidavit of Disinterested Person
If the motion is granted, the case shall be raffled off-or assigned to a
court designated to hear the case.
c. If motion to litigate as indigent is denied, the plaintiff has five (5) days
within which to pay the docket fees, otherwise, the case is dismissed
without prejudice.
❖ In no case shall a party, even if indigent litigation be exempt from
paying the Php1,000.00 fee for service of summons and processes of
the court.
However, if more than five(5) small claims are filed by one party within the
calendar year, regardless of the judicial station, an additional filing fee of
500.00 shall be paid for every claim filed after the fifth(5th) claim, and an
additional 100.00 or a total of 600.00 for every claim filed after the tenth(10th)
claim, and another 100.00 or a total of 700.00 for every claim filed after the
fifteenth(15th) claim, progressively and cumulatively.
If the plaintiff is engaged in the business of banking, lending and similar
activities, the amount of filing and other legal fees shall be the same as those
applicable to cases filed under the regular rules.
Dismissal of the Claim – a small claim maybe dismissed outright if the
evidence by itself does not proved the claim such as those reasons provided
in dismissing a civil action.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
❖ Rule 16 (Rules of Court)
Grounds for Motion to Dismiss for cases more than Php400,000.00 under
regular courts.
1.Court has no jurisdiction over the person of the defendant or over the
subject of the action or suit;
2.Court has no jurisdiction over the nature of the action or suit;
3.Venue is wrong;
4.Plaintiff has no legal capacity to sue;
5.There is another pending between the same parties for the same cause;
6.Cause of action is barred by a prior judgment or by statute of limitation;
7.Compliant state no cause of action;
8.The claim or demand set forth in the plaintiff’s pleading has been paid,
waived, abandoned or otherwise extinguished.
9.The claim on which the action or suit is founded is unenforceable, covered
by the statute of frauds.
10.The suit is between members of the same family and no earnest efforts
towards a compromise have been made.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
II – PROCEDURE AFTER FILING THE STATEMENT OF CLAIM
▪ Determination of the applicability of Small Claims Law
• If no ground for dismissal is found, the court shall issue summons
(Form 2 – SCC) on the day of receipt of the statement of claim,
directing defendant to submit a verified Response.
▪ Issuance of Summons and Notice of Hearing
• A notice of hearing to both parties (Form 4-SCC) to appear before
the court and a specific date, time of hearing with warning for
unjustified postponement.
▪ Service of Summons and Notice of Hearing
• The summons and notice to be served on the defendant shall be
accompanied by a copy of the statement of claims and documents
submitted by the plaintiff, and a copy of the blank response (Form
3-SCC) to be accomplished by the defendant.
▪ Return of service of Summons
• A notice of hearing shall accompany the Summons and shall
contain: (a) the date of hearing, which shall not be more than thirty
(30) days from the filing of the Statement of Claim/s; and (b) the
express prohibition against the filing of a motion to dismiss or any
other motion.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
▪ Effect of failure to serve summons
• If Summons is returned without being served on any or all of the
defendants, the court shall order the plaintiff to cause the service
of summons and shall inform the court within thirty (30) days from
notice if said summons was served or not; otherwise, the
Statement of Claim/s shall be dismissed without prejudice as to
those who were not served with summons.
▪ Sheriff and process server’s Incidental expenses
• The incidental expenses of sheriff and process server’s should
be provided by the Plaintiff.
III – PROCEEDINGS AFTER THE DEFENDANT RECEIVED THE
SUMMONS
▪ Response
Defendant shall file with the court and serve upon plaintiff a duly
accomplished, verified response within a non-extendible period of ten
(10) days from receipt of summons.
The response shall be accompanied by certified photocopies of
documents, as well as affidavits of witnesses and other evidences in
support thereof.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
No evidence shall be allowed during the hearing which was not
attached to or submitted together with the Response, unless food
course is shown for the admission of additional evidence.
▪ Counterclaims Within the Coverage of the Rule - if at the time the
action is commenced, defendant possesses a claim against the plaintiff
that;
a. Is within the coverage of this Rule; exclusive of interest and costs;
b. Arises out of the same transaction or event that is the subject matter
of plaintiff’s claim.
c. Does not require for its jurisdiction the joinder of third parties; and
d. Is not the subject of another pending action, the claim shall be filed as
a counter claim in the Response; otherwise, the defendant shall be
barred from suit on the counterclaim.
e. Defendant may also elect to file a counterclaim against the plaintiff that
does not arise out of the same transaction or occurrence and nature
thereof are within the coverage of this Rule and the prescribed docket
and other legal fees are paid.
▪ Specific denial of the allegations
IV – SPECIAL RULES TO CONSIDER
▪ Special rules on evidence
▪ Prohibited pleadings and Motions
a. Motion to dismiss except in the ground of lack of jurisdiction.
b. Motion for Bill of particular.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
c. Motion for new trial or for reconsideration of a judgment or for
reopening of trial.
d. Petition for relief from judgment
e. Motion for extension of time to file pleadings, affidavit or any other
paper.
f. Memoranda.
g. Petition for certiorari, mandamus, or prohibition agent, any
interlocutory order issued by the court.
h. Motion to declare defendant in default.
i. Dilatory motion for postponement.
j. Reply and rejoinder.
k. Third party complaints; and
l. Intervention.
▪ Difference between pleadings and motions
V – HEARING
▪ Calendar of Cases
▪ Appearance –
a. Parties shall appear at the designated date, time of hearing personally
or;
b. Through a representative duly authorized under a special power of
attorney (Form 5 –SCC) to enter into an amicable settlement, to submit
to mediation, and to enter into stipulations or admissions of facts and
of documentary exhibits;
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
c. An attorney for either party is prohibited to represent any of the parties
unless the attorney is the plaintiff or defendant himself/ herself;
d. If the court, determine that a party cannot properly present his/her
claims or defense and needs assistance, the court may in its discretion,
allow another individual who is not an attorney to assist that party upon
his/her consent.
▪ Effect of Non-appearance of parties
a. Failure of the plaintiff to appear shall a cause for the dismissal of the
claim without prejudice.
b. The defendant who appears shall be entitled to judgment on a
permissive counter-claim
c. Failure of the defendant to appear shall have the same effect as a
failure to file a response.
d. This shall not apply where one or two or more defendants who are
sued under a common defense appears at the hearing.
e. Failure of both parties to appears shall cause of dismissal of the case
with prejudice of both the claim and counterclaim.
▪ Postponement – Upon proof of the physical inability of the party to
attend a scheduled date and time only one postponement is allowed to
the parties.
▪ Role of the Clerk of Court
▪ Role of the Judges
▪ Duty of the Court - Reading and explaining of the nature, purpose and
rules of procedure of small claim cases.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
VI – SETTLEMENT AND MEDIATION
▪ Pre-hearing settlement
▪ Settlement during the hearing
▪ Judicial Dispute Resolution (JDR)
The judge shall conduct JDR through mediation, conciliation, early
neutral evaluation or any other mode of JDR.
a. Any settlement (Form 8-SCC) or resolution of the dispute shall be
reduced into writing, signed by the parties and submitted to the court
for approval (Form 9-SCC and Form 10-SCC).
b. If JDR fails and the parties agree in writing (Form 10-SCC) that the
hearing of the case shall be presided by the judge who conducted the
JDR, the hearing shall proceed in formally expeditiously and
terminated within one (1) day.
c. Absent such agreement:
❖ In case of a multi-sala court, the case shall on the same day, be
transferred (Form 11-SCC) to the office of the Clerk of Court for
immediate referral by the Executive judge to the pairing judge for
hearing and decision within five (5) working days from referral and;
❖ In case of a single sala court. The pairing judge shall hear and decide
the case in the court of origin within five (5) working days from referred
by the JDR judge.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
▪ Motion to approve Compromise Agreement
• At the hearing, the Judge shall exert efforts to bring the parties
to an amicable settlement.
• If the case is settled, the settlement shall be reduced into writing,
signed by the parties and submitted to the court for approval,
• If no settlement is reached, the hearing shall so proceed in an
informal and expeditious manner and terminated within the same
day.
VII – JUDGMENT AND EXECUTION
▪ Duties of the Judge
▪ Duties of the Clerk of Court / Branch Clerk of Court
▪ Form of Decision
▪ Release of the Decision
• After the hearing, the court shall render its decision and the same
day based on the facts established by the evidence (Form 11 -
SCC);
• The decision shall immediately be entered by the Clerk of Court
in the court dockets and a copy thereof served on the parties
▪ Failure of the other party to abide the decision
▪ Post-judgment remedy
▪ Can the decision of the small claims court be appealed?
No appeal. The decision shall be final, executory and unappealable.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
▪ Execution – if the decision is in favor of the plaintiff execution shall be
issued upon motion (Form 12w – SCC)
Receiving the Judgment
The small claims court clerk will mail out the copy of case decision a few
days to a few weeks after the judge hears your matter. The winner gets a
money judgment and becomes the judgment creditor. The loser becomes
the judgment debtor.
Enforce a Judgment from a Small Claims Case
Contact the party that owes you money with a formal letter or notice. As
this is your first attempt to enforce the small claims judgment, be polite and
offer to work with the person. Don't make threats or harass the debtor
Begin the Collection of a Judgment
Obtain a Writ of Execution (sometimes called Writ of Attachment or Writ of
Garnishment) from the court in order to start the collection process. Simply
take the document sent by the court that grants your judgment to the
county clerk's office and fill out the proper form for your state.
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FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Head to the sheriff's or marshal's office with your writ and ask for a seizure
of assets form. You must know as many details as possible about the
assets you wish to be seized. For bank accounts, you only need to know
which bank the debtor uses. To garnish wages, you must know his or her
employer.
If your attempts to enforce the judgment have failed, consider hiring a
professional debt collector or agency.
And that’s it.
28
FREE GUIDE REPORT ON HOW TO COLLECT DEBTS AND GET PAID
Congratulations for getting a copy of this eBook, “How To Collect debts and
Get Paid”. A complete step-by-step Credit and Collections Guide for Small
Business in the Philippines. FREE GUIDE REPORT
I assure you this valuable informational guideline will help you a lot.
Good luck! You may now implement what you have read and learned from
this eBook.
Best Regards,
Gloria T. Alparo
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