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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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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.

https://gloalparo.com/

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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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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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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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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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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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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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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

https://dictionary.findlaw.com/definition/usury.html

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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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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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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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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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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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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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▪ 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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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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❖ 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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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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▪ 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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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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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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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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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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▪ 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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▪ 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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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.

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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

free guide report on how to collect debts and get paid · nakasurvive, isa sa mga problema ng mga...

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