Collecting small claims can be challenging, as debtors may dispute or refuse to pay. Tips include communicating before and after court, making written payment requests, and offering payment options. If debtors still don’t pay, levies and liens can be used. Accepting payment agreements and seizing funds or placing liens on property may also be options.
Collecting small claims can be difficult. Sometimes defendants dispute money owed or simply refuse to pay; sometimes they don’t have the money to pay. Some tips for successfully collecting small claims include communicating with the debtor both before and after small claims court, making payment requests in writing, and offering payment options. Sometimes, however, debtors don’t pay, even after a judge orders them to. If so, the plaintiff can use levies and liens to collect the money owed to them.
One of the best tips for collecting small claims is to get everything in writing. If an individual is seeking to collect a small amount before going to small claims court, it is important to make payment requests in writing. In this way, the defendant cannot claim to have no knowledge of the collection attempts. Sending written requests to provide proof of receipt can also help.
Another tip for small claims collection is to keep the lines of communication open before going to court. Often times, people are willing to settle once they realize that the actor is serious about collecting the money that he believes he is owed. If the person owed money informs the debtor that he intends to take it to small claims court and attempts to collect the money verbally and through written correspondence, there is a possibility that the other person settles out of court.
Some of the tips for managing small claims can be helpful after a person has already won their small claims lawsuit as well. For example, after winning a small claims lawsuit, a person can expect to receive payment from the defendant without taking further action. Unfortunately, however, cases don’t always proceed this way, and it may be necessary for a plaintiff to begin post-court collection efforts. In that case, you may need to send additional written requests to the defendant to request payment. Collection efforts done over the phone can also help.
A person who has won a judgment in a small claims lawsuit may also consider accepting payment agreements instead of requiring the defendant to pay the entire debt in full. A plaintiff may want to receive the full amount of the judgment he won in small claims, but the defendant may not be able to pay it right away. Offering payment arrangements allows the plaintiff to collect at least a portion of the money rather than waiting an indefinite period of time for the defendant to pay the full amount.
In some jurisdictions, a person who has won a small claims judgment may also have the opportunity to collect on the debtor’s property to collect a judgment. For example, funds may be seized from a debtor’s bank account to help pay the judgment. In some cases, a person may also place a lien against the home or other property of the debtor.
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