How to take a client to small claims court over an unpaid invoice
Key takeaways
Small claims limits run from about $2,500 to $25,000 depending on the state. Texas allows $20,000.
Sue the legal entity on your contract. A wrong business name can make a judgment hard to collect.
A demand letter with a firm date settles many claims before anything is filed.
Bring three proofs to the hearing: they agreed, you delivered, they stopped paying.
The judgment is the midpoint. Collection tools differ by state.
When small claims makes sense for an unpaid invoice
Small claims works best when the amount fits under your state’s limit, your agreement is in writing, and the client still has a business or assets you can reach. Filing costs are low, the forms are short, and most hearings are scheduled within a few months.
It works less well when the client has closed down, filed for bankruptcy, or disputes the quality of the work and you have nothing showing they signed off. In those cases, a judgment may cost more to chase than it returns.
Step by step: filing small claims for an unpaid invoice
The steps below follow the order most state courts expect. Names of forms and deadlines vary by state, so check your court’s self-help page or the clerk before filing.
Check the limit and the right defendant
Look up your state’s small claims limit and whether businesses face a lower one. Then find the client’s exact legal name in your state’s business registry. "Smith Builders" on a truck may be "Smith Construction Group LLC" on paper, and that is the name the judgment needs.
Send a demand letter
Put the amount, the invoice number, the work delivered and a payment date in writing, usually 10 to 14 days out. Send it by email and certified mail. Some courts expect you to have asked for payment before you sue. See the demand letter guide for a template.
File in the right court
Venue is usually where the client lives or has its business, or where the work was done. You file a short petition or statement of claim and pay the filing fee. Many states now accept online filing.
Serve the client
The client has to receive the papers in a way the court accepts: a sheriff or constable, a private process server, or certified mail in some states. Keep the proof of service. Without it, the case does not move.
Prepare your evidence
Print the contract or signed quote, proof the work was delivered, the invoice, and your reminders. Put them in date order. A one-page timeline helps the judge follow you in a hearing that may last 15 minutes.
Go to the hearing
Explain what was agreed, what you delivered, and what is unpaid. If the client does not answer or does not show up, you can usually ask for a default judgment.
Collect the judgment
If the client still does not pay, the court can issue collection tools such as a writ of execution, a bank account levy or a lien on property. What is available depends on your state.
What it costs to recover an unpaid invoice
Doing it yourself costs the court fees plus your time. Paying someone else costs a share of the recovery or an hourly rate. Here is how the usual routes compare.
| Route | Upfront cost | Typical fee | Your time |
|---|---|---|---|
| Do it yourself in small claims | Filing plus service fees | None | Several hours over a few months |
| Collection agency | Usually none | Often 25% to 50% of what is collected | Low, but agencies rarely file in court |
| Collections attorney | Retainer or none on contingency | Hourly, or often around a third on contingency | Low |
| Easy Small Claims Fix It | $99 to start, $299 maximum, plus court fees at cost | None. You keep 100% | About 20 minutes plus the hearing |
Mistakes that sink small claims cases
- Suing the owner personally when the contract is with their LLC, or the other way around.
- Claiming more than the limit without realizing you give up the difference.
- Threatening criminal charges to get paid. That can create problems for you.
- Showing up with a story and no documents.
- Missing the hearing. A no-show by the person who filed usually means dismissal.
Questions, answered
Can I sue a client in small claims for an unpaid invoice?
Yes. An unpaid invoice is a breach of contract claim, and small claims courts in every state hear them as long as the amount fits the state limit. You need to show the client agreed to the price, that you delivered the work, and that the invoice is still unpaid.
How long does small claims court take?
It depends on the court’s calendar. Many small claims cases reach a hearing within one to three months of filing, and a default judgment can come faster if the client never answers. Collecting after the judgment can add weeks or months if the client resists.
Can I sue a client in another state?
Usually you file where the client is located, which can mean their state’s small claims court. Some contracts name a state or court for disputes. Check your agreement first, then the court rules where the client is based.
Is it worth going to small claims for $500?
It can be, because filing fees are low and a judgment often prompts payment. The math changes if you have to travel, if the client has no assets, or if your time is worth more than the claim. A demand letter is the cheapest test of whether they will pay.
What evidence do I need for an unpaid invoice case?
Three things: proof the client agreed to the price (a contract, signed quote or approval email), proof you delivered (photos, files, delivery slips), and proof they stopped paying (the invoice, reminders and replies). Put them in date order before the hearing.
Practicing barrister and founder of QuickAds. Built Easy Small Claims so small businesses can recover invoices they would otherwise write off.