How To Collect on a Debt in Small Claims Court

If someone owes you a small amount of money, you can file a complaint in small claims court.It is cheaper and quicker to file your claim in a lower level trial court.Many small claims courts will let you go through the process on your own, so that you don't spend as much on an attorney as you are trying to collect

Step 1: Do you think small claims court is the best choice?

Consider the amount of money involved in the case.For claims that are lower than the cutoff limit, small claims court is available.Small claims court limits the amount of discovery that can be done before a trial or hearing.If you have a large amount of money in your case, you may want to look at a different court.Small claims court can be used for many types of cases.Payment disputes over broken or damaged property can include the return of security deposit.There are cases where a written or verbal contract is broken.Determine how much money you are owed by whom.Small claims courts can review evictions and landlord-tenant matters.If you are trying to evict a tenant, you need to know what the laws are in your area.

Step 2: If necessary, consult a lawyer.

You can handle your case without a lawyer in most small claims courts.If the case is complicated for any reason, or if the amount of money is large enough to justify it, you may want to hire one.Lawyers are not allowed in some small claims courts.Even though you handle your own case in court, you may still consult with a lawyer for advice.If you believe you need an attorney, check with your local or state bar association.Some bar associations offer free consultation services.

Step 3: Send a demand letter.

This is a formal demand, which means you intend to collect.Identifying the amount of money you are demanding, the reason for payment, and a deadline for the defendant to make payment is what you should include in your letter.If payment isn't made by the due date, you will be in court.Sending a written demand is a requirement in some courts.You can't file a suit without it.You can go directly to court in other courts.In either type of court, a demand letter is a good idea because it shows an effort to resolve the dispute without the court involved.

Step 4: If you want to resolve your dispute without court, mediate it.

A mediation system is designed to help you and the other party resolve your dispute without going to court.Both sides meet with a third party who helps them talk about the debt and try to reach an agreement.If you want to avoid going all the way to court, a settlement for something less than the full amount may be a good solution.Bringing a suit in court can take a long time.Mediation can be a free or low-cost service in some states.The cost of hiring a neutral mediator can vary depending on the complexity of the case.

Step 5: Another option is to go to court.

It's similar to mediation and allows you to try to resolve your dispute before going to court.It is a bit more formal than mediation, but still more efficient than a trial.The way a judge would rule is that you and the other party each present their case to an arbitrator, who issues a ruling.It is possible to be binding or non-binding.You will not proceed to trial if you and the defendants choose binding arbitration.If you don't like the decision, you have the right to go to court.You can contact the court clerk's office if you would like to try out an alternative method of settlement.Some courts have their own panels.The New York City civil court has a volunteer panel of lawyers who will help you resolve your dispute for free.

Step 6: Local laws regarding small claims cases can be researched.

You should know what the local rules are regarding small claims court if you decide to take your claim to court.In small claims court, courts have maximum limits on the amount you can ask for.Alabama has a low limit of $3,000 for small claims cases.Tennessee can allow up to $25,000.You have two options if you want a higher amount than the small claims rules allow.If you want to fit within the small claims limit, you could reduce your demand or file your case in a higher level trial court.The procedures will probably take longer if you choose to proceed in a higher level court.You should consult with an attorney if you choose that option.

Step 7: Decide where to file your complaint.

You can file a small claims case at the court that is closest to you.There are rules that control where you can file.If the debt was incurred in the county where the business is located, then your case should be filed there.

Step 8: You can draft your complaint.

The statement in which you state your case and explain why you think the other party owes you money is called a complaint.Many small claims courts have a form for you to fill out, but you may need to write it out yourself.The cost of filing a claim in small claims court can be as high as $200.Check with the court clerk to find out what form of payment is required.Attach a signed contract or receipt for services to your complaint to support your claim for money owed.

Step 9: There is a hearing date.

The clerk may give you a date for the hearing when you file your complaint.Notices of a future date can be provided by mail to both parties.If you don't understand the system in your court, you should check with the court clerk.

Step 10: The defendants should be served with the complaint and hearing notice.

It is your duty to serve the defendants with the complaint and hearing notice if you are in a court.There are different ways to make service of a complaint.To find out the required system in your court, you need to ask the clerk or read the court rules.One method is to have a person who is older than 18 years old deliver the papers to the defendants.This could be a friend or relative.A professional process server can be hired to serve the papers.If you think the defendants will try to avoid the service, this is a good idea.The county clerk can serve the papers by mail.This may not be available in some courts.You have to ask the clerk.You have to serve the defendants right away when you file the complaint.You must give at least a few days notice before the court date.In California, you have to serve the court papers at least 15 days in advance.If the person, business, or public entity is outside of the county, you have 20 days.The rules of service apply to all defendants if there are multiple.

Step 11: The courtroom style is familiar to you.

Before you have to appear for your hearing, you should visit the small claims court.When your case is eventually called, watch how the cases are conducted and learn what to expect.

Step 12: If you want to prove your claim, you need to collect all the evidence.

If you want to win a case, you need to show that a debt is owed and that the exact amount is.Bring the contract if you have it.Bring the receipts if you have them.If you have copies of checks, bank statements, or anything that shows the amount of money involved, bring it.If you can only get photocopies, it will be better than nothing.The formal rules of evidence are not as strict in small claims court.

Step 13: Encourage witnesses to show up with you.

If you believe that the testimony of witnesses is relevant to your case, try to get the witnesses to testify with you.If your sister is not in court, you cannot tell the judge that she heard the defendants promise to pay her $1,000.

Step 14: Prepare your presentation.

As possible, be as organized and direct.Don't getbogged down in irrelevant history by focusing on the points that are related to your claim.If your presentation is clear and direct, the judge will be better able to make a decision.A few key questions are what you should focus on in your presentation.What has it done to you?The other party owes you money.Why is the person at fault?

Step 15: Make a demand on the person.

You don't get the money when you win a court case.You get an order from the judge that the person owes you money.You need to work with the other person.Some defendants will pay you the money they owe after they lose the case.You may need to send a notice to the other party so they know where the money is going.

Step 16: The small claims court is where the nonpayment should be reported.

As long as the debt is not paid, the court will keep jurisdiction over your case.The court can issue additional fines or even jail the person if they refuse to pay.

Step 17: A writ of execution can be obtained.

In order to enforce payment of a judgment, you need to get an order called a "writ of execution." This is an additional order from the court that specifically orders your local sheriff to make certain collection efforts.If you want to learn how to get a writ of execution, ask the clerk of the small claims court.

Step 18: Take the defendants wages.

The writ of execution can be delivered to the local sheriff if the defendants refuse to pay and if they have a steady job.The sheriff will deliver the writ to the employer and order them to pay a portion of the debt directly to you.State law sets limits on how much you can get from a pay check.

Step 19: Attach the debtor's account.

Depending on the amount of money in the bank, the sheriff can use your writ of execution to attach the account.The bank will be ordered to remove the money by the sheriff.The name and branch address of the bank or other financial institution used by the defendants are required to do this.