If someone owes you money and they’ve failed to pay even after multiple reminders and negotiations, you might consider filing a lawsuit to recover the amount. Below is a general overview of the steps to file a lawsuit for non-payment.
| A simpler and cheaper alternative: To avoid all the hassles of filing a lawsuit, consider forwarding this account to a collection agency. Professional debt collectors have been around for decades, and your internal staff cannot match their success rate, legal compliance and recovery cost. They can also file a lawsuit as a last resort. Need assistance: Contact Us |
Filing a Lawsuit
Note that the exact process can vary by jurisdiction, so it’s essential to consult local rules and legal counsel for specifics.
- Evaluate the Claim:
- Determine the amount owed.
- Evaluate the strength of your claim, i.e., do you have a written agreement, emails, texts, or other evidence of the debt?
- Consider if the debtor has the means to pay; there’s little point in suing someone who is insolvent unless you hope to secure a judgment for future payment.
- Attempt to Resolve the Issue Out-of-Court:
- Send a formal demand letter detailing the amount owed, the basis for the debt, and a deadline by which payment should be made.
- Consider offering a payment plan or negotiating a reduced amount as a compromise.
- Think about mediation or alternative dispute resolution methods.
- Determine the Proper Court:
- For smaller amounts, you might file in small claims court, which is typically quicker and less formal.
- For larger amounts, you’d file in a higher court (like a district or superior court).
- Gather Documentation:
- Collect all relevant evidence like contracts, invoices, emails, payment receipts, or any communication related to the debt.
- Organize your evidence to present a clear and chronological case.
- File the Complaint:
- Draft a complaint that details your claim. This document outlines the facts of the case, the legal basis for your claim, and what you’re asking the court to do.
- File the complaint with the appropriate court, and pay any necessary filing fees.
- Serve the Defendant:
- Once you’ve filed, the other party (the defendant) needs to be formally notified. This is typically done by a process server or law enforcement officer.
- Ensure you follow the local rules for service, as improper service can delay or jeopardize your case.
- Await the Defendant’s Response:
- After being served, the defendant typically has a set amount of time to file a response or answer.
- They might admit to the debt, deny it, or raise defenses.
- Engage in Pre-Trial Procedures:
- This can include discovery, where both sides share evidence and information. It might involve written questions (interrogatories), document requests, or depositions.
- Both sides might file motions, asking the court to make certain decisions before trial.
- Trial:
- If you can’t settle out-of-court, your case will go to trial.
- Present your evidence and make your case. Depending on the court, you might be before a judge or a jury.
- Judgment:
- If the court rules in your favor, you’ll receive a judgment stating the amount the defendant owes you.
- Even with a judgment, you might still need to take steps to collect the money, such as wage garnishment, liens, or other methods.
- Consider Legal Counsel:
- Especially for larger amounts or complex cases, consider hiring an attorney to guide you through the process and represent your interests.
It’s essential to be aware of any statute of limitations that applies to your claim. If you wait too long, you might lose the right to sue for the debt. Always consult with an attorney or legal professional about the specifics of your case.