@vhec andaya, a person who receives a loan of money or any other fungible thing acquires the ownership thereof, and is bound to pay to the creditor an equal amount of the same kind and quality (Article 1953, Civil Code of the Philippines). The creditor who was not paid by his debtor may go to the courts to seek redress for the debtor’s failure to fulfill his obligation. Because your neighbor's friend refused to pay his indebtedness to you, you may compel him to pay the same by filing an action for collection of sum of money before our courts. However, since your claim for payment of money is less than one hundred thousand pesos (Php100,000.00), your petition should be filed in accordance with the Rules of Procedure for Small Claims Cases before the Metropolitan Trial Courts, Municipal Trial Courts in Cities, Municipal Trial Courts, and Municipal Circuit Trial Courts designated as small claims court of the place where you or your debtor lives (En Banc Resolution No. A.M. No. 08-8-7-SC dated October 27, 2009).
A small claims action may be commenced by filing with the court an accomplished and verified Statement of Claim (Form 1-SCC) in duplicate, accompanied by a Certification of Non-forum Shopping (Form 1-A, SCC), and two (2) duly certified photocopies of the actionable document/s subject of the claim, as well as the affidavits of witnesses and other evidence to support the claim. (Section 5, Rules of Procedure for Small Claims Cases). You shall also be required to pay the docket and other legal fees prescribed under Rule 141 of the Revised Rules of Court, unless you are allowed to litigate as an indigent (Section 8, ibid.)