What to do when your friends or borrower never pay you back?

Imagine you are lending your friend an amount of RM500. He promised to return the money back to you within 3 months. However after 3 months he was playing gimmicks and did not intend to return the amount to you. You started chasing him for the money but he hide away from you. What can you do other than write off the debt? Do you have any other options ? GOOD NEWS to you, the answer is YES !

Any debt below RM5000 are welcomed to be filed under SMALL CLAIM COURT. This allows you to exclude yourself from the lengthy and complex procedures, not to mention about the legal fees needed to hire a lawyer. 

Here are the steps leading you to file a small claim : 

(You are being called as PLANTIFF. While your friend is DEFENDANT.)

1. First, gather all the evidences and information. (Receipts, chat history, emails, etc.)

2. Go to Magistrate Kuala Lumpur and request the person at the counter to send you the form (No.198) through email.

3. After obtaining the form, the plaintiff is required to fill the details and particulars of the claim within the form by typing it out. Take note that all the documents must be typed and printed in black and white. No handwritten is allowed.

4. Place a copy into an A4 envelope, together with your evidence and return it to the court.

5. The form will then be sealed  by the court , date of discussion would be set. The court will then send you the form back to you email.

6. Remember to print two copies of the form (Writ No. 198) after you have received the email. Keep another set of form as your own copy.

7. Place one copy of the form into an A4 envelope and head over to post office nearby. Remember to send the documents using AR POST ! It would take longer time (two weeks) to reach the defendant however the good thing is that you would be receiving the acknowledgement receipt after your defendant has received the documents.

8. All you have to do now is wait for the hearing to come! Remember ! Do not be late for the court or skip the court without any reason! 

On the other side, the defendant will respond to your claim by filing Form No. 199 if he refutes the plaintiff's claim. 

However, the drawback to file a small claim is that:

1. Both parties are not allowed to be represented by lawyers. It means that you and your friend would be involved in a debate throughout the court. And if your friend is an articulate person, he might have higher chance to persuade the court and win the case. 

2. If the defendant did not show up for on the date of discussion, 

3. For your info, you are allowed to claim the amount spent on filing small claim or any amount spend for the case. However, this is subjected to the approval of the court. The maximum amount could be claimed is RM100.

4. It would be an advantage if both plaintiff and defendant are staying in the same district ( Either both Selangor or both KL). If the plaintiff is from Perlis and defendant is from KL, p

laintiff would be advised to file the claim at Magistrate Perlis. If the plaintiff files the claim in KL, the defendant has the right to not attending the hearing. The procedures would be more complex if that happen to be the case.