Can You Collect Debt Through Small Claims Court?

If your attempts to call and write your delinquent customer about unpaid bills do not result in payment, you might want to send a final demand letter stating that if payment is not received within 10 days, you will sue. Many debt dodgers will pay up at that point simply to avoid going to court.

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The amount of unpaid bills that can be collected through small claims court varies from state to state — some have minimums of $1,000; others start at $2,500 and run up to $10,000. If you are owed more than your state allows you to sue for in small claims court, you can attempt to collect a lesser amount.

While small claims court is a great way to prove that you are owed money, it does not guarantee that you will collect. The judge in your small claims courtroom cannot force your customer to pay. If your debt-dodging customer is an employed individual, a clerk at the small claims court can help you to garnish the person's wages. Other options include attaching a lien to the late paying customer's home, business or personal bank account.