How to Claim Money That Is Owed to Me

Legal procedures to collect money owed to you.

Procedures exist in all states in the U.S. allowing people to make claims for money owed to them. A particular state's code of civil procedure contains the bulk of the procedures associated with claiming money owed. Although these provisions differ slightly from one jurisdiction to another, the laws associated with claiming money owed largely are the same across the country. Following these procedures is crucial to ensuring that you maintain the best position to collect money due.

Things You'll Need

• Demand letter
• Petition in small claims case
• Petition in regular lawsuit

Instructions

1. Organize all documentation supporting your claim of money owed to you.

2. Prepare a demand letter to the person or business that owed money to you. Keep in mind that the laws in most states require you to make an attempt to settle any dispute, including involving money owed to you, before you undertake further legal proceedings. The primary element of attempting to resolve a dispute is a demand letter.

3. Include in the demand letter the exact amount of money owed to you, the reason you are due the money a specific deadline by which the funds must be paid to you. Make it clear that you accept only certified funds and not a standard personal or business check. Finally, note that if payment is made as set forth in the demand letter you will execute a full release of liability. However, advise that absent the payment, you will pursue further legal action.

4. Determine the law in your state regarding small claims cases and regular lawsuits. The availability of a small claims lawsuit is based on how much money claimed. If you seek over that amount, which varies from state to state, a regular lawsuit represents the only available judicial option. You need this information if the other party fails to pay.

5. Obtain a form petition in small claims or for a regular lawsuit from the clerk of the court where you intend to file suit. Court clerks maintain forms for small claims cases and typically for regular lawsuits as well. You file suit either in the county of residence of the individual or business or in the county where the transaction occurred that gave rise to the money due.

6. Complete the petition. The petition calls for basic information including the names of both parties (you and the other individual or business), the amount of money owed and the reason for the debt.

7. File the petition with the clerk of the court.

8. Request the clerk to direct the sheriff to serve the petition and other court papers on the other party.

9. Attend the initial court date scheduled for the case. If the other party fails to show or make a valid defense, you obtain judgment in your favor. If the other party appears and does not contest the case, you receive judgment. If the other party disputes, the case is set for trial.

10. Appear and the trial and present evidence supporting your claim for money. Evidence includes documents and witnesses. Provided you prevail on your claim, the court grants judgment in your favor.

References

• California Code of Civil Procedure
• NOLO: Demand Letter Basics
• California Courts Self Help Center: Small Claims

Resources

• Cornell Law School: Civil Procedure Overview