Taking a Debtor to Small Claims Court
At some time in your business life, you have a customer who owes you money. You may decide that the only way to get this money is to take the person to small claims court. Here are some tips on the small claims process:
- Small Claims Court Process
The process of taking someone to small claims court is designed to be easy for anyone and to avoid having to pay attorney fees. It is possible for you to file the paperwork and receive a judgment for little cost in terms of money and time.
- Small Claims Limit
You can only use small claims court if the debt is below a specific amount. The small claims limit is determined by your state. To find the limit for your state, search for "[state name]" and "small claims limit."
- Small Claims Process
The small claims process begins when you file a complaint with your county. You can get the paperwork and fill out the necessary forms yourself. You will need to pay for the filing and also for an officer of the court to serve a summons on your debtor. The court then sets a date for the case to be heard in small claims court.
- Presenting Your Case
Come to the court at the appointed day and time to present your case. Be sure to bring all the documentation that shows that you did the work or sold the product to the customer, including any agreements or sales receipts signed by the customer. If you have the proper documents, the court will usually award you the judgment. This means that the court is ordering the customer to pay you the amount that is due.
- Collecting on a Judgment
Just because the court has awarded you the judgment, it doesn't mean that the person will pay. You may have to go back to court to get a lien on the person's property or to order a wage garnishment.
As you can see, the small claims process is fairly simple, but you must do the work to set up the claim and pursue payment through the court.
