Small claims court specializes in serving creditors who have been unable to recover their money, helping them find solutions and protect their rights. Each state sets limits on the maximum amount a plaintiff or individual can sue for, so before filing a complaint, be sure to check how current local law handles small claims. At the same time, local law dictates who the plaintiff is and where the lawsuit should be filed.

Review Cases

Review the facts of the case to make sure someone actually owes money and is refusing to pay. Of course, if you lend money to others, you must know exactly how much you owe. But what if you want to lose money? Or other forms of financial compensation? The first step in the small claims litigation process is figuring out how much is owed and to whom. If you sue someone for not paying back money, you become the plaintiff and that person is the defendant.

Send a letter to the debtor requesting payment of the debt. Letters should be sent through a certified U.S. postal service. This way a copy of the letter can be used as evidence in the event of a court trial. Sometimes, simply threatening someone with a lawsuit can lead to successful debt collection. Try to think of going to court as a last resort, not as a first option.

• In the letter, you may also suggest mediation, which is a type of negotiation in which each party presents its case in front of an impartial mediator, who then determines who owes whom how much. Mediation is less expensive and faster than litigation.

If you ultimately decide to go to court, you must familiarize yourself with the local laws governing small claims cases. The remaining thing to note is that the law determines the maximum amount of compensation that can be obtained in a case. Before filing a lawsuit, give the district court all the information you need.

• How much compensation can you get in small claims court? This depends on state regulations. Generally, it cannot exceed 60,000 yuan. Some states, such as Alabama, have a maximum compensation limit of $18,000, while others, such as Tennessee, have a maximum compensation limit of $150,000 for small claims.
• If the amount owed exceeds your state’s maximum compensation amount, do not file a lawsuit in that state. In this case, you have two options. One is to lower the amount of compensation so that the case meets the amount of compensation and instead file a lawsuit in a higher court. Litigation in a higher court requires (1) legal advice; (2) more fees; and (3) several years of hearings.

File a Claim

Determine the appropriate venue for litigation. Which city or county has jurisdiction over the lawsuit? Figuring out where to file a claim can be a little complicated. Of course, you must first confirm the situation with the county court, but at the same time, you may also consider determining the location of the lawsuit based on the following situations:

• The defendant’s residential address;
• The place where the contract is signed or executed;
• The locations where the business is involved;
• the location where the loss occurred;
• The location where the goods involved in the case are permanently stored.

Determine the exact name of the defendant(s). It is important to establish the accurate and legal name of the defendant. Use state civil servants’ computers to track down the legal names of anyone who wants to file charges.

• Ask the relevant civil servant for access to the Virtual Business Name Index, a system through which you can look up the identity of any business owner.
• Other ways to determine the identity of the owners of an enterprise, company, or joint venture:
• The industrial and commercial bureau of the city where you are located
• Your city or county tax assessor’s office
• Secretary of State

Before filing a Complaint, contact the court office staff to determine how you will pay your legal fees. Some courts only accept cash or credit cards; others may accept personal checks. Finally, depending on the circumstances of the case, determine whether photos and identity information are required.

Go to County Court to file a claim. Go to the court where the claim is filed and fill out the necessary documents. Complete the complaint and explain in concise and informative words the entire process of not paying back the money you owe. The staff will immediately give you a court date, which will be needed when the documents are sent.

• If you have any evidence to support your claim, such as signed contracts, attach them to the complaint.
• When filing a case with the court, additional brief documents may need to be completed. If you have any questions, be sure to ask the staff, as they know the situation better and are very helpful.

Transfer files. There are several ways to deliver documents to a defendant. The first method is to find an adult over the age of 18 who is not involved in the lawsuit to send the documents. Remember, he must not be involved in litigation. The second method is to hire a professional process server (also called a formal process server) to serve the documents. The third method is to ask the county sheriff, chief, or police officer to help deliver the documents. Finally, you can also ask county court staff to mail documents via a state-certified mail carrier.

• The summons must be served at least 15 days in advance of the court date.
• If there is more than one defendant, it is not enough to just serve one summons; all defendants must receive the summons.

Win in Court

Go to small claims court before your case goes to trial. This can be helpful in your case so that you will have a better idea of what to do when the judge calls your name and asks you to present your case. It’s easier to win a lawsuit when you’re well-prepared, so don’t underestimate the power of an observer.

Whenever possible, try to gather as much evidence and/or witnesses as possible. If you don’t want a friend or acquaintance to accompany you, you need to find witnesses who can convince the judge that you are more reliable than unsubstantiated claims. At all times, we should pay attention to the role of evidence rather than rumors, and actively seek reliable information rather than radical speculation and assertions.

Make your point clearly. Since the trial lasts only 15 minutes, speed is of the essence. To persuade the judge concisely and effectively, you should try to:

• Quickly summarize your claim. Including what happened? What impact did it have on you?
• What damage was caused by the answer? And what do the other parties owe you?
• Answer why someone else in the case is at fault.
• Summarize why the responsibility is not yours.

If the case is won, the defendant will be more likely to repay what is owed. But it doesn’t mean that you will definitely get money if you win the lawsuit. After the verdict, the defendant has 30 days to decide whether to pay compensation according to the amount of compensation or to reopen the case through appeal. Here are some ways to make the defendant’s life more difficult until you get your money and property back:

• An application was made to seize part of the defendant’s property. This is also known as abstract judgment.
• Garnish the defendant’s wages. This is also known as the execution of a judgment.
• Request an inspection of the debtor, requesting that the defendant’s wallet be immediately inspected and all cash inside be taken away.

Tips

• Assuming you win your small claims case, the next step is to collect the money you owe. State laws have different rules on how to collect money, so it’s important to carefully research local regulations.
• Laws and regulations vary from state to state, and some laws and regulations also differ from county to county within the same state. This means that in some places, the date of the hearing can be determined immediately, while in other places, the date, time, and location of the hearing will be notified by email.
• You must attend the court at the specified time and place on the day of the hearing. If you do not show up, the court may choose to continue the trial, but it may also reject the case because you did not appear in court at the specified time.