Prior to or upon the date set for answering the defendant shall in writing file in court his or her answer or defense to the plaintiff‘s claim and may claim any counterclaim he or she may have against the plaintiff’s claim, as he or she might plead the claim in an action begun by complaint and summons, and shall file a statement in writing of his or her counterclaim with the court, and the court shall determine which of the parties is entitled to decision against the other, and in what amount, and enter decision accordingly, but not exceeding the sum of two thousand five hundred dollars ($2,500). If the defendant’s counterclaim shall exceed the sum of two thousand five hundred dollars ($2,500), and in the opinion of the court there shall be due the defendant thereon an amount greater than two thousand five hundred dollars ($2,500), the court shall enter decision against the plaintiff as in case of nonsuit, and for the defendant for his or her costs only, and shall not further adjudicate upon the claim of the defendant, whose right to sue for the claim shall remain in the same manner as before the commencement of the action. The court may continue the hearing from time to time as may be necessary.