How Small Claims Court Works

Small claims court is a simplified track for money disputes below a set value, designed so people can run a case without a lawyer. The process follows a clear sequence, and skipping a step costs time and fees. This is general legal information, not legal advice, and the names of documents, the thresholds and the procedures differ by country and jurisdiction, so check the rules where you live.

What the small claims track handles

Typical claims include unpaid invoices, faulty work, a deposit not returned, damaged property, money lent to a friend or relative, and disputes with a trader. The track is for money rather than for forcing someone to do something, and it normally excludes libel, some tenancy matters and complex personal injury.

The value limit varies widely. Some places cap it at a few thousand in local currency, others at tens of thousands. A claim above the cap is not refused, but it moves to the standard track, where the procedure and the costs rules are heavier. Check the current figure before you file, because it changes.

• Claimant - The person or business bringing the claim.
• Defendant - The person or business the claim is brought against.
• Track - The procedural route a case is allocated to, based on value and complexity.

The letter before action

Before filing, send a written demand. State the amount, set out the facts and dates in order, attach copies of invoices or receipts, and give a deadline to pay, usually 14 or 30 days. Keep it factual and short, without insults or threats.

Say plainly that you will file a claim if the deadline passes. Some jurisdictions require this letter as a formal step, and a court can reduce the costs you recover if you never sent one. Send it by a method that proves delivery, and keep a copy plus the postal or delivery receipt.

• Letter before action - A written demand sent before a claim is filed.
• Pre-action protocol - Rules on what the parties must do before starting a case.
• Proof of delivery - Evidence such as a receipt or tracking record showing the letter arrived.

Filing the claim

File through the court service or the online portal for your area. Expect a filing fee that rises with the amount claimed, and a further hearing fee later. Many places add those fees to the judgment if you win, but you pay them up front.

You will need the defendant's correct name and address, a short statement of what happened and what you want, and a list of the evidence you hold. Naming the wrong legal entity is a common and expensive mistake, so check the company register for a business, and use a service address where you can.

• Filing fee - The charge for starting a claim, based on the amount claimed.
• Service - The formal delivery of the claim to the defendant.
• Particulars of claim - The written statement of the facts and the amount sought.

The response, default and settlement

The court serves the claim and the defendant has a fixed time to reply, often 14 to 28 days. If they ignore it, you can usually ask for judgment in default, which gives you a court order without a hearing.

A default judgment proves the debt but does not collect it. If the defendant defends, expect a directions notice setting deadlines for evidence, and expect a settlement window before the hearing. Hearings on this track are informal, and judges ask questions rather than expect speeches.

• Judgment in default - An order made because the defendant did not reply in time.
• Directions - The court's timetable and instructions for both sides.
• Without prejudice - Settlement talk that cannot be shown to the judge.

The evidence bundle and the hearing

Build a numbered bundle: the contract or order confirmation, invoices, bank statements, photographs, emails and messages, plus a one page chronology of events. Bring three copies, one for the judge, one for the other side and one for you, and number every page so everyone can refer to it.

At the hearing you summarise the facts, point to the documents and answer questions. Keep to the time the judge sets, and do not interrupt the other side. Costs on this track are limited, so a witness who charges a large fee is rarely worth calling.

• Bundle - The indexed set of documents both sides and the judge use.
• Chronology - A dated list of the key events in the dispute.
• Costs - Money one side pays towards the other's fees, usually limited here.

Enforcement if they still do not pay

If the order is ignored, ask the court to enforce it. Options include sending bailiffs, taking money directly from wages, freezing a bank account, or registering a charge over property. Each route has its own form and fee, and some need a further hearing.

Enforcement can cost more than the debt and still fail if the defendant has no money or assets, so check the register of judgments and think about whether the person can actually pay before spending more. If an eviction, a criminal allegation or a court deadline that has already passed is involved, get a qualified lawyer or a free legal advice service straight away.

• Bailiff - An officer who can attend premises to collect goods or money.
• Attachment of earnings - An order taking instalments straight from a wage.
• Charging order - A claim registered against property to secure a debt.