Hi, I'm Cliff Ennico legal editor of sbtv.com and author of the best selling books Small Business Survival Guide. So you got a dead beat that owes you money and they're not paying up when they should. And the amount is small let's say $2,000.00 to $7,000.00 enough so it hurts, enough so that you don’t really want to walk away from this debt yet not big enough that your willing to hire an attorney at $300.00 a heartbeat and goes through the person in court. There is another thing you can do, how can you collect this step answer take then to small claims court. Every state in the United States has a small claims court system and there is nothing wrong with bringing a lawsuit for a small amount of money, usually less than $10,000.00 in small claim court.
You can even do it if the debtor leaves in another state but it is risky. You'll be doing it yourself; most small claim courts do not want to see attorneys in small claim court proceedings. The whole idea of using a small claims court is that you shouldn’t have to pay a layer, a large sum of money to represent you. You will be representing yourself and that is one of life’s most scary experiences but if the amount involved is big enough and it hurts enough, it’s the best way to get the debtors attention so that he ends up paying you on time.
Here’s how it works, first of all get the pamphlet every state bar association has a pamphlet called Guide to Using our Small Claims Court System. This pamphlet has all the information you need and all the forms that you need to bring a lawsuit in small claims court against someone else. call your state capital that’s way the state bar association is usually located and ask for their publications department or you can search for them on the web by typing in the name of your state bar association in quotes you will almost certainly get to the state bars association website. Ones your there go to the publications department and order the pamphlet it will usually be free or they may charge you a small posted fee like five box for the pamphlet.
What happens if your data is in another state, let's say that you saw something on eBay for $3,000.00 the buyer is in California and they're refusing to pay. I think it’s a waste of time to bring an action in small claims court anywhere but the state where the buyer lives. So in this case you're going to have to find out where the small claims courts are in the county in which the buyer has his home. And bring the case there, there is nothing wrong with bringing a small claims court proceeding in another state.
Just make sure you call the California state bar association get their pamphlet and then follow their rules in filling out the documents. Throw out the paperwork mail it to the small claims court along with whatever filing fees the small claims court imposes and here is something really, wonderful that happens. When you fill a case to the small claims court that you treat just like you filled the lawsuit in regular court, they will send someone out to the debtor’s home. Usually someone with a gun like a county marshal or a state trouper or something like that and that person will interrupt the buyer as he and his family are sitting down to dinner and serve them with litigation papers.
If you’ve ever been serve with papers, you know what a terrifying experience that is nine time out of ten you will get that debtors attention so much, he will call that night and offer to settle the case in someway with you and you will get at least some of the money you're entitled to. But let's say he doesn’t and go to court, now you have to start preparing for that small claims courts case. Step two watch lots of television, believe it or not I am deadly serious about this. Have you ever any of this judge shows on TV, just like Judge Duty, Judge Mailing, Judge Joe Brown let me tell you a dirty little secret about those TV shows they're all based on actually small claims court proceedings around the country.
These guys are actual judges or at least they were at one time. And what they're doing are actual small claims court proceedings. Watch lots of this shows because it’s a very good indicator of how this things go, you'll be able to see exactly how a judge conveys in a situation like yours and what they're likely to do, what kind of questions they're going to ask. It’s a very good way to prepare. There is a wonderful website www.TVJudgeShows.com again that’s www.TVJudgeShows.com where you can get sort of a comparison of the different judge shows and people can rate them, it’s a wonderful website to find out where this shows lives on your local TV channel.
Watch lots of this because what those judges are doing on TV to those people is exactly what your judge is going to do to you. Last but not the least prepare, prepare, prepare I cannot say this often enough to my clients 95% of the time the winner in small claims court is the party who is best prepared. If you go into this not organized the judge is going to make measly of you. have all your facts in a row, have you sent the debtor a warning saying that your going to do this, have you sent him and invoice that was properly detailed, did you send them a letter specifically demanding payment. If you haven’t done any of these things chances are the judges not going to like you and if the judge doesn’t like you that is not a good thing you will probably loose in small claims court.
Have all your dots in line and a very important point if your exchanges with the debtor were all by email print the emails out and bring them with you to the small claims court proceedings. Many small claims judges in courts are not set up to be interknitting, you will not be able to access those emails online. Have hard copies and be sure to bring an extra set so you can hand them to the other side when they show up at the small claims hearing. I'm Cliff Ennico for sbtv.com.
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