If you are thinking about going to small claims court to recover an outstanding debt owed to your small business, you may want to think again. The point of small claims court is that it gives the involved parties a chance to settle disputes while avoiding any more expensive and complicated court procedures later on. But often the hassle (i.e. the paper work, the pre-case preparation, and having to personally go to court) and the cost (in fees) of going through the small claims process outweighs any benefits.

 

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Moreover, even though several states have reported an increase in the number of claims being filed- especially among businesses seeking to recover a debt owed to them or consumers disputing a charge, many of the claimants are unable to collect on their debts even after wining their case. This is due to the fact that a claimant who wins a case is solely responsible for collecting the funds afterwords. Even if the claimant is eventually successful, it will come at the cost of even more time and even more money spent in fees.

If you decide that going to small claims court may still be a viable option for your small business, then you should at least make sure that you go into the process well-informed. For more general information on the small claims process you should consult sites like this one in Florida and this one in Texas. Be sure to also get information specific to the county in which you will be filing.

 

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