How to Decide Whether You Should File a Claim in Small Claims Court

Small claims courts were set up in the last century to provide an informal way for people to collect everyday debts. They are used by banks, landlords and neighbors to extract payments from people debtors. Before you start filling out forms, however, must consider several factors.

Instructions

Difficulty: Moderately Challenging

1. Understand the limits of the court. Small claims courts are pro se courts. That means that you conduct your own case and make your own argument. They do not use juries. Decisions come from the judge or magistrate. Since the amount of money at stake is relatively small, proceedings can be less formal. Small claims are heard in county, circuit or magistrate courts, depending on the state court system.
2. Decide whether you have a good case. Evaluate the strength of your evidence. It helps to have a receipt or some other written acknowlegement of the obligation. Photographs or other graphic evidence can support your claims of damage or loss. A reliable witness will further enhance your chances.
3. Prove your case. You must be able to demonstrate to the court that your claim is based on actual loss. Receipts, cancelled checks, professional repair estimates, photos, drawings, written contracts and oral testimony are examples of evidence that can be used to support your claim. You can only get a judgment for losses that you can prove.
4. Seek all that you are due. In addition asking for a judgement for actual losses, many plaintiffs seek payment for other less tangible losses called damages. These damages must be justified with actual costs to that can be directly attributed to the failure of the defendant to honor his committment. Judges have absolute discretion in this area and usually examine claims for damages very closely.
5. Supply proof of proper notice. You must show that you made a demand to the defendant for payment before filing. The debtor must be notified that you are considering going to small claims court. A written demand and follow up telephone call is required to prove that you have made a good faith effort to collect the debt.
6. Check your state's regulations to find out what type of claims (purpose, amount, limitatations) can be filed in small claims court. Judges must follow the law, including the "statutes of limitations" on claims. If your claim is allowed by law, consider mediation. This service is provided by many attorneys and bar associations.
7. Determine whether you can collect. Even if you win, you must be able to collect your money. That means that you have to know where the defendant resides. It also means that he must be able to pay you.

Tips & Warnings

• The maximum you can win in a small claim varies from state to state. To study regulations in your state, search "small claims courts" and the name of your state. You can also use this search to find forms and instructions for filing.
• Small claims court rules concerning evidence and the burden of proof can differ from criminal or civil procedures. Learn the steps that you must follow as the plaintiff to present a valid claim and get a successful judgement.
• If the amount of your claim rises toward the maximum, or your story becomes more complex, you many want the advice of an attorney. Many courts and bar associations provide small claims advisors to help plaintiffs make decisions regarding their cases.