5 Common Small Claims Misconceptions in the Philippines

Small claims offer a practical and effective means of resolving financial disputes in the Philippines, providing a streamlined process that is faster and more accessible than traditional court procedures. However, misconceptions about the small claims process can hinder individuals from pursuing claims or may lead to unnecessary anxiety.

This guide clarifies five common misunderstandings and offers practical advice on protecting your mental and emotional well-being throughout the process.

1)      I Need a Lawyer

The most common small claims misconception in the Philippines is that a lawyer is required to file a small claims case. The reality is that small claims are specifically designed to be user-friendly and accessible to individuals without legal representation. The Revised Rules on Expedited Procedures in First Level Courts (2022)[1] clearly state that parties involved in small claims cases can file and represent themselves without the need for a lawyer, allowing individuals to avoid the financial burden of legal fees.

While you don’t need a lawyer, handling legal matters can still trigger a range of emotions, especially frustration, anxiety, or stress. Acknowledging these feelings is a vital first step. Neuroscience shows that acknowledging your emotions helps regulate the brain’s emotional center, the amygdala, by promoting a conscious, thoughtful response to stress rather than a reactive one. By acknowledging your emotions, you create the space to process them healthily, reducing the potential for emotional overload.[2]

2)      I Can Directly File the Complaint with the Court

The second most common misconception in the Philippines is that many believe that they can directly file their small claims complaint with the court. However, this is only true if the parties involved do not reside in the same barangay or adjacent barangays. If both parties reside within the same barangay, the Barangay Justice System[3] mandates that the dispute first be addressed at the barangay level through conciliation before proceeding to the court.

 While this additional step may feel like a delay, it’s an opportunity for a potential out-of-court settlement that could save time and reduce emotional strain. Shifting your perspective on this process can help reframe the situation as an opportunity for resolution, not an obstacle. According to research, reframing a situation activates the prefrontal cortex, helping improve cognitive flexibility and emotional regulation.[4] Rather than viewing it as a setback, consider it an opportunity for peaceful resolution and a way to reduce the stress of prolonged court proceedings.

3)      Small Claims Are Only for Personal Loans

It’s a common misconception that small claims are only for personal loans. In truth, small claims can be used to settle a variety of unpaid financial matters, including debts, rental payments, service contracts, or the sale of personal property, as long as the claim does not exceed 1 million pesos.

When you find yourself facing a financial dispute, especially one involving overdue payments, it’s important to stay grounded in the present moment. Practicing mindfulness can be an effective way to stay focused during this stressful time. Neuroscience shows that mindfulness practices such as deep breathing or body scans, activate the parasympathetic nervous system, helping to reduce stress and promote emotional balance.[5] A regular mindfulness routine can help calm the nervous system, reduce anxiety, and allow you to make clear, informed decisions during the claims process.

4)      The Process Takes Forever

 Another common myth surrounding small claims is that the process is slow and cumbersome. Contrary to this belief, the small claims process is designed for speed and efficiency. According to the Revised Rules on Expedited Procedures in First Level Courts (2022)[6], small claims cases are typically resolved within two months from the date of filing. This time frame is one of the key benefits of small claims, offering a quick resolution to financial disputes.

Despite the expedited nature of the process, waiting for a resolution can still be stressful. The key to managing this stress is empowered action. Empowerment is linked to a sense of control and agency, both of which can reduce feelings of helplessness. Research indicates that proactive behavior triggers the release of dopamine, which contributes to feelings of satisfaction and accomplishment. By actively pursuing your claim and staying engaged with the process, you foster a sense of control that can help reduce anxiety and improve your overall well-being.[7]

5)      I Can’t Claim It, It’s Been Too Long

Finally, many people mistakenly believe that too much time has passed, and they can no longer pursue a small claims case. This is not true. The statute of limitations for small claims in the Philippines is 6 years for oral contracts and 10 years for written contracts, unless otherwise specified by law. As long as your claim falls within these time limits, you are still eligible to file a case.

The emotional toll of delayed claims or extended waiting periods can be considerable. To maintain resilience throughout this process, it’s crucial to prioritize self-care. Engaging in regular self-care routines, such as physical exercise, maintaining a balanced diet, and ensuring adequate rest, has been shown to enhance emotional regulation and reduce stress.[8] Prioritizing self-care, such as exercise, a balanced diet, and rest, can enhance emotional resilience and clarity, helping you navigate the claims process effectively.

Conclusion

Understanding the small claims process in the Philippines empowers you to resolve financial disputes without unnecessary fear or confusion. By debunking common misconceptions, you gain the clarity and confidence to move forward. Protecting your mental and emotional well-being during this process is equally important.

Acknowledging your emotions, shifting your perspective, practicing mindfulness, taking empowered action, and prioritizing self-care are all strategies supported by neuroscience and psychology that can help you manage stress and improve your resilience.

Small claims cases offer an accessible avenue for resolving financial disputes, and by approaching them with the right mindset and strategies for well-being, you can navigate this process with confidence and peace of mind.

[1] Supreme Court of the Philippines. (2022). Revised Rules on Expedited Procedures in First Level Courts.

[2] Davidson, R. J., & McEwen, B. S. (2012). Social influences on neuroplasticity: Stress and interventions to promote well-being. Nature Neuroscience.

[3] Republic Act No. 7160, Local Government Code of 1991, Book III, Title I, Chapter VII. (1991).

[4] Kabat-Zinn, J. (2003). Mindfulness-based stress reduction (MBSR).

[5]  Kabat-Zinn, 2003.

[6] Supreme Court of the Philippines, 2022.

[7] Davidson & McEwen, 2012.

[8] Davidson & McEwen, 2012.