How to Make Someone Pay a Debt
Loaning money to friends and family can create uncomfortable situations if the person doesn't repay the loan. But if you've done it and have trouble collecting the debt, there are recourses that you have to make someone pay a debt. If reason and persuasion fail you, then you typically must turn to the courts for assistance. Follow these steps to begin the process.
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Instructions
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Go to small claims court to begin the collection process if the amount is under your state's limits. Most states use about $5,000 as the uppermost limit that you can sue for in small claims court, while some states go as low as $3,000 or as high as $10,000. If the debt is higher than the small claims court limit in your state, you must either reduce the amount of your claim or hire an attorney to file a case in a higher court.
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Fill out a civil warrant or civil summons in small claims court. Be sure to have all the correct information about the debtor, including proper names and names under which the individual does business. Include the amount of the claim and the reason for the warrant. Prepare to pay a sheriff's or process server's fee for serving the warrant, which varies from jurisdiction to jurisdiction.
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Prepare to represent yourself at the trial. Show up for the trial date, which is set by the court, with all the documentation you have concerning the debt in question. Bring copies of agreements, receipts from purchases made on behalf of the debtor and a summary detailing all of the actions you have personally tried to take to collect the debt. Bring witnesses if they have information to add to your case.
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Present your case to the judge. Most cases in small claims court are done in an informal manner, allowing each side to tell their story to the judge. The judge may ask questions to determine the veracity of the claims. Witnesses must be sworn in and the judge will question the witnesses. It is up to the discretion of the judge as to what documents are allowed into evidence.
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Hear the judgment of the judge, which is typically rendered following the presentation of the case by both sides. Either side may appeal the judgment if they do not agree. Appeals go the next level in the court system; usually the court of appeals, and both sides should be represented by attorneys in order to follow the rules of evidence required for those hearings.
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Tips & Warnings
Be sure to file a claim within the statute of limitations, which varies from state to state. Visit Nolo for a list of statute limitations in all 50 states.
Further legal action may be needed to enforce the court's judgment. Vehicles are in place including summons and garnishments of pay or personal property.
