How Small Claims Works
A small claim results from a dispute involving two parties and a sum of money. A small claims court processes only monetary claims. A few states allow petitions for eviction or eviction relief and requests for property damage restitution.
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Statute of Limitations
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Each state has rules limiting the time before a lawsuit expires. If time passes without any filing, no court action is possible. Guidelines for a small claim depend on your state; the amount involved can range from $2,000 to $10,000.
Filing a Small Claim
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When both parties reside or work within close proximity, the lawsuit goes to local court. Some states allow filing at the same site as the contract signing or the personal injury incident. However, the parties are rarely close to one another. Even if recovery is likely, travel expenses could outweigh claim recovery.
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Winning in Court
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Even if a judgment favors you, courts will not assist in judgment collection. Before filing papers or paying fees, evaluate the possibility of collecting and determine if it would be worth your time, effort and money to proceed.
The other party may be "judgment-proof"--that is, without money or assets; in such a circumstance, you might collect nothing. If the financial situation appears temporary, make a repayment plan. Depending on the state, judgments can remain valid for 10 to 20 years.
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