Small claims court: how to sue for money you're owed

What small claims court actually is

Small claims court is a division of state civil court designed for everyday money disputes — unpaid rent, a bad contractor, a landlord keeping your deposit, a used-car sale gone wrong. The point is speed and access: simplified forms, no jury, and in many states no lawyers allowed on either side. You represent yourself (called appearing pro se), the judge asks direct questions, and hearings usually last 15–30 minutes.

It's the right tool when someone owes you a specific dollar amount under your state's limit and you have some paper trail — a contract, texts, receipts, photos, a canceled check. It is not the right tool for injunctions (making someone do something), custody, evictions in most states, or claims against the federal government. It's also different from a class action lawsuit, which bundles many people's small claims into one big case handled by lawyers.

Dollar limits by state (2026)

Every state sets its own maximum. Sue for more than the cap and you either waive the excess or have to file in regular civil court, which is slower and usually requires a lawyer. Limits change — verify with your county clerk before filing.

Here's a rough map of where states fall. The high end (Tennessee, Delaware) is unusual; most everyday consumers are in the $5,000–$10,000 band.

Before you file: the demand letter

Do not skip this step. A written demand letter — sometimes called a notice of intent to sue — is required in some states and strongly recommended everywhere else. It often gets you paid without filing at all, and judges love to see one because it proves you tried to resolve things.

Keep it to one page. Include: who you are, what happened with dates, the exact amount owed and how you calculated it, a deadline to pay (10–30 days is standard), and a clear statement that you'll file in small claims if they don't respond. Send it by certified mail with return receipt so you have proof of delivery — that green card is exhibit A at your hearing.

If they respond with a partial offer, get any settlement in writing and signed before you cash the check. If they ignore you or refuse, you've built the record you need. Around 30–50% of well-written demand letters get a response before litigation, per plaintiff-attorney surveys.

How to file, step by step

Filing is intentionally straightforward. Your county court's website will have the forms and current fees. Bring photo ID and payment (many courts still don't take credit cards for filing).

1. Confirm your claim is under the state limit and within the statute of limitations (usually 3–6 years for written contracts, 2–4 years for oral).
2. Identify the correct defendant — the legal name of the business, not the storefront name. Look up the LLC or corporation on your Secretary of State's website.
3. File in the right venue: usually the county where the defendant lives, does business, or where the dispute happened.
4. Complete the plaintiff's claim form (SC-100 in California, for example). Describe the dispute in 2–3 sentences and state the exact dollar amount.
5. Pay the filing fee ($30–$100 in most states). Fee waivers are available if you're low-income — ask for the form.
6. Arrange service of process: the defendant must be formally notified by a process server, sheriff, or certified mail, depending on state. This costs $20–$95 extra.
7. Save your hearing date and every document. Missing the hearing means automatic loss.

Building your evidence for the hearing

Small claims judges decide cases on documents and short testimony. You typically have 5–10 minutes to present. Organize your evidence so anyone can follow it cold.

Bring three copies of everything: one for the judge, one for the defendant, one for you. Number your exhibits (Exhibit 1: contract, Exhibit 2: text messages, Exhibit 3: photos of damage, Exhibit 4: repair estimate, Exhibit 5: demand letter and certified mail receipt). Put them in a simple folder with a one-page timeline on top.

Photos and screenshots should be printed, dated, and captioned. If you have text messages, print the full thread — not just the parts that help you. Emails should include full headers. Witnesses can appear in person or, in many courts, by written declaration signed under penalty of perjury. Expert opinions (a mechanic's written estimate, a contractor's inspection) carry more weight than your own opinion of what work should cost.

Rehearse out loud. Two minutes summarizing what happened, what you're asking for, and why the number is right.

Winning is not the same as collecting

Here's the part nobody warns you about: a judgment is a piece of paper saying you're owed money. It does not make the defendant pay. Somewhere between 20% and 50% of small claims judgments are never collected, mostly because the defendant is broke, has moved, or simply refuses.

If they don't pay within 30 days, you have several tools, each requiring another form and small fee:

• Wage garnishment — a court order taking a percentage (usually up to 25%) of the defendant's paycheck. Requires knowing their employer.
• Bank levy — freezes and pulls funds from their bank account. Requires knowing where they bank.
• Property lien — attaches to real estate they own; you get paid when they sell or refinance. Slow but reliable.
• Debtor's examination — a court hearing where you can force the defendant to disclose assets under oath.

Judgments last 5–20 years depending on state and can usually be renewed. Interest (often 5–10% per year) accrues automatically. If you can't collect now, file the paperwork to preserve the judgment and check back annually.

When small claims isn't the right fix

Small claims is great for a specific debt against a specific person or business. It's the wrong tool in several common situations.

If your dispute is with a huge company (a bank, airline, streaming service, retailer), you probably signed an arbitration clause that blocks court entirely — small claims is sometimes carved out as an exception, but check the fine print. In those cases you may be better off filing a complaint with the CFPB, DOT, or your state attorney general, or waiting for a class action settlement to open and filing a claim there instead. Companies have refunded billions this way — browse open settlements before you sue.

If the amount owed is under $500, the filing fee, service cost, and half a day off work often outweigh the recovery. And if you were harmed alongside thousands of others by the same conduct, joining a class action is usually the more efficient path — you don't file, you don't appear, you just cash the check when it arrives. Owed can find these for you automatically — see what you're owed in about 30 seconds.

This article is general information, not legal advice. Court rules vary — verify everything with your local clerk before filing.

Glossary

Pro se

Representing yourself in court without a lawyer — the norm in small claims.

Demand letter

A written notice to the other party stating what they owe and giving a deadline before you sue.

Service of process

The formal legal delivery of your lawsuit to the defendant so the court has jurisdiction.

Judgment

The court's official decision that you are owed a specific amount of money.

Garnishment

A court order that takes money from the debtor's wages or bank account to satisfy a judgment.

Statute of limitations

The deadline by which you must file suit, usually 2–6 years depending on the claim type.

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