Small Claims Court: The Complete Guide

Your demand letter didn't work. Now what? Small claims court is designed for exactly this situation—it's an accessible, affordable way for regular people to resolve disputes without expensive lawyers. According to the U.S. Courts, small claims divisions exist in every state specifically to help citizens resolve minor disputes efficiently.

This comprehensive guide walks you through everything you need to know: from determining if small claims court is right for your case to collecting on your judgment after you win.

What Is Small Claims Court?

Small claims court is a simplified legal process for resolving disputes involving relatively small amounts of money. Rules are relaxed, procedures are streamlined, and you typically represent yourself. The court is designed to be accessible to people without legal training.

Key Features of Small Claims Court

• Simplified procedures: Less formal than regular court, with relaxed rules of evidence
• No lawyers required: Many states prohibit or discourage attorney representation
• Quick resolution: Cases typically heard within 30-70 days of filing
• Low cost: Filing fees range from $30-$200
• Self-representation: You present your own case to the judge

Small Claims Limits by State

Every state sets its own maximum amount for small claims court. Common limits include:

• California: $12,500 ($6,250 for businesses)
• Texas: $20,000
• New York: $10,000
• Florida: $8,000
• Tennessee: $25,000
• Delaware: $25,000

If your claim exceeds your state's limit, you can either sue for the maximum (waiving the rest) or file in regular civil court.

Step-by-Step: How to File

1Determine Where to File

Usually, you file in the county where the defendant lives or where the dispute occurred. For businesses, you can often file where the business operates.

2Get the Forms

Visit your local courthouse or their website. You'll need a "Plaintiff's Claim" or similar form. Many courts offer fillable PDFs.

3Complete the Forms

Include:

• Your name and address (the plaintiff)
• Defendant's legal name and address
• Amount you're claiming
• Brief description of what happened

4Pay the Filing Fee

Filing fees range from $30 to $200 depending on your state and claim amount. Many courts waive fees for low-income plaintiffs.

5Serve the Defendant

The defendant must be officially notified of the lawsuit. Methods vary by state but often include:

• Sheriff or process server delivery
• Certified mail with return receipt
• Substitute service (to a household member)

6Wait for Your Court Date

Courts typically schedule hearings 30-70 days after filing. Use this time to prepare your evidence and practice your presentation.

Preparing for Your Hearing

Organize Your Evidence

• Make three copies of everything: one for you, one for the judge, one for the defendant
• Organize documents chronologically
• Highlight or tab key sections
• Prepare a one-page summary of your claim

Prepare Your Statement

You'll have limited time to explain your case. Practice a clear, chronological story that covers:

• What was the agreement or understanding?
• What went wrong?
• What did you do to try to resolve it?
• What are your specific damages?

Bring Witnesses If Helpful

If someone witnessed key events, ask them to come. Written statements are less persuasive than live testimony.

The Hearing Itself

Small claims hearings are informal but have structure:

1. Check in: Arrive early and let the clerk know you're there
2. Plaintiff presents: You explain your case first and present evidence
3. Defendant responds: They tell their side
4. Judge asks questions: Both parties may be asked to clarify
5. Decision: Some judges rule immediately; others mail the decision

If You Win

Winning is only half the battle. You'll receive a judgment, but collecting the money is your responsibility:

• Voluntary payment: Many defendants pay once there's a judgment
• Wage garnishment: Courts can order a portion of wages to be sent to you
• Bank levy: You may be able to seize funds from their bank account
• Property lien: Place a lien on real estate they own

If You Lose

In most states, you can appeal a small claims decision, but appeals go to regular court with formal procedures. Consider whether the amount justifies the additional effort.

Tips for Success

• Send a demand letter first: Judges appreciate that you tried to resolve it
• Be specific about damages: Vague claims lose
• Bring all evidence: You can't add it later
• Dress professionally: First impressions matter
• Never interrupt: Wait for your turn to speak
• Know the law: Research relevant statutes before your hearing
• Arrive early: Check in with the clerk and familiarize yourself with the courtroom
• Be concise: Judges have limited time and appreciate brevity

What If the Defendant Doesn't Show Up?

If the defendant fails to appear after being properly served, you can request a default judgment. The judge will typically:

1. Verify that the defendant was properly served
2. Ask you to briefly present your case
3. Award you the amount you're owed (if your claim is valid)

Default judgments are common—many defendants ignore lawsuits hoping they'll go away. They don't.

Counterclaims: When the Defendant Sues Back

The defendant may file a counterclaim against you. This is a separate claim they have, which will be heard at the same time. If this happens:

• You'll receive notice of the counterclaim before your hearing
• Prepare a defense just as you'd prepare your own case
• The judge will rule on both claims
• You could win your claim but lose the counterclaim (or vice versa)

Collecting Your Judgment

Winning is only half the battle. If the defendant doesn't pay voluntarily, you'll need to use collection methods available through the court:

Wage Garnishment

Request the court to order the defendant's employer to withhold a portion of their wages and send it to you. Limits vary by state, but typically 25% of disposable earnings can be garnished.

Bank Levy

If you know where the defendant banks, you can request a levy that freezes and seizes funds in their account. You'll need the bank name and branch location.

Property Lien

Record your judgment with the county recorder to place a lien on any real estate the defendant owns. When they sell or refinance, your judgment must be paid.

Debtor's Examination

Request a hearing where the defendant must appear and disclose their assets, income, and bank accounts. This helps you identify what to garnish or levy.

Frequently Asked Questions

How long do I have to file a small claims case?

Statutes of limitations vary by claim type and state. Contract claims typically have 4-6 years; fraud claims often have 3 years. File as soon as possible after your demand letter deadline passes.

Can I sue someone in a different state?

You can, but it's complicated. Generally, you must file where the defendant lives or does business, or where the transaction occurred. Suing out-of-state defendants may require filing in their state.

What if I can't afford the filing fee?

Most courts offer fee waivers for low-income plaintiffs. Ask the clerk for a "fee waiver" or "in forma pauperis" form. You'll need to demonstrate financial hardship.

Can I sue a company that went out of business?

If the company is a corporation or LLC, you can sue the entity. Collecting may be difficult. If it's a sole proprietorship or the owner personally guaranteed debts, you can sue the individual owner.

How long does a judgment last?

Judgments typically last 10-20 years depending on your state, and can usually be renewed. A judgment also accrues interest (typically 7-10% annually), so it grows over time.

Should I accept a settlement offer before trial?

Consider: (1) How strong is your case? (2) Is the offer reasonable compared to what you're owed? (3) Will collecting on a judgment be difficult? Sometimes a bird in hand is worth two in the bush.