An indigent party is defined as someone who has no money or property sufficient and available for food, shelter, and basic necessities for themselves and their family.

A party may be authorized by the court to litigate their action, claim, or defense as an indigent. This authority is granted upon an ex parte application and hearing, provided the court is satisfied with the party's condition. However, this authority may be contested at any time before judgment is rendered. If the application does not fully meet the requirements under Rule 141, Section 19, the court should still apply the "indigency test" under Rule 3, Section 21 and use its discretion. If the applicant meets the salary and property requirements under Rule 141, Section 19, the grant is mandatory. If the court later determines the party has sufficient income or property, proper fees are assessed and collected.

Authority to litigate as an indigent includes exemption from the payment of docket fees and other lawful fees. It also includes exemption from the payment of transcripts of stenographic notes that the court may order to be furnished. However, even if declared indigent, a party in small claims cases is not exempt from the P1,000.00 fee for service of summons and processes.

The amount of fees from which the indigent was exempted shall be a lien on any judgment rendered in the case favorable to the indigent, unless the court otherwise provides. Docket fees may be a lien only for damages arising after the complaint or when the court has discretion in fixing the award. After-judgment liens apply to incorrectly assessed/paid fees or where the court has discretion to award amounts. Failure to pay full docket fees is not an automatic ground for dismissal but allows for discretionary dismissal.

Under Rule 141, Section 19, indigent litigants are defined as those whose gross income and that of their immediate family do not exceed an amount double the monthly minimum wage of an employee, and who do not own real property with a fair market value of more than PHP300,000. The "immediate family" includes spouse, fiancé(e), parent, child, brother, sister, grandparent, grandchild, uncle, aunt, nephew, and niece, and guardian or ward.

In specific proceedings:

• In applications for a writ of habeas data, no docket and other lawful fees are required from an indigent petitioner. The petition shall be docketed and acted upon immediately, with proof of indigency submitted within 15 days.
• In criminal cases, an accused can be deemed indigent if they are in custody and unable to post cash bail or proffer sufficient sureties, supported by a certification from the local social welfare office, have been arraigned, and the court has notified the local government.