If the efforts of your collection agency fail and no satisfactory payment arrangement is made, you may want to look into filing a small claims complaint against your debtor. Filing a small claims complaint is generally inexpensive, but be sure to check with your state’s laws regarding the maximum amount allowed for your claim. Anything over that amount is not allowed in small claims court, and must be filed as a suit in civil court. If the amount of your claim is under the maximum amount allowed in small claims court, you can normally find a small claims complaint form online for your state, or visit the court clerk’s office to obtain a complaint form to fill out and file. The key to a successful small claims suit is service. Be sure to use an accurate address of the debtor and have the complaint served upon the debtor via certified mail or sheriff service, depending upon your state’s small claims procedures. If the address is outdated or the debtor is otherwise not served with the complaint, then it is generally impossible to proceed with the suit and obtain a judgment. Likewise, if your claim amount is higher than the amount allowable in small claims court, you can prepare a civil complaint and file it with your court clerk’s office. Again, a current address is key. Service upon the debtor must be successfully completed before proceeding with the suit and obtaining a judgment in your favor.
Don’t just write off a debt that is rightfully due and owing to you and your business. There are many options available to you that may be successful in collecting money from an unwilling customer or client. After exhausting all avenues available to you, persistence may just prove to pay off after all.