Texas small claims court for businesses
Key takeaways
Limit: $20,000, not counting statutory interest and court costs.
Court: the justice court precinct tied to where the client is or where the work was done.
Deadline to answer: end of the 14th day after service.
Appeal: within 21 days of judgment, with a new trial in county court.
Texas protects wages from garnishment for ordinary debts, so plan collection around bank accounts and property.
Texas small claims at a glance
The rules for justice court cases are in Rules 500 to 510 of the Texas Rules of Civil Procedure. The table covers what a business collecting its own invoice needs most.
| Question | Texas answer |
|---|---|
| Which court | Justice court (justice of the peace) |
| Maximum claim | $20,000, excluding statutory interest and court costs |
| Who can appear for a business | An owner, officer, partner, employee, or a lawyer |
| Filing fee | Set by each county, often around $54, plus a service fee |
| Answer deadline | End of the 14th day after the defendant is served |
| Appeal window | 21 days after judgment, new trial in county court |
| Wage garnishment | Not available for ordinary business debts |
Fees and procedures change. Confirm with the clerk of the precinct you file in.
Small claims case or debt claim case?
Texas justice courts hear two kinds of money cases. A business collecting its own unpaid invoice files a small claims case. Debt claim cases are for lenders, debt buyers, collection agencies and assignees, and they follow extra rules. If you sell the debt to someone else, the case type changes with it.
Where to file in Texas
File in the county and precinct where the client lives or has its place of business, or where the contract was to be performed. Rule 502.4 sets out the options. If you are unsure, the justice court clerk can tell you whether your case belongs in their precinct.
How service works
After you file, the court issues a citation. A constable, sheriff or certified private process server delivers it, and in some cases the clerk can serve by certified mail. The 14-day answer clock starts on the day of service.
Collecting a Texas judgment
Texas is a hard state to collect in, and it is better to know that up front. Wages are protected for ordinary debts, and homesteads and many personal items are exempt. What usually works for business debts:
- An abstract of judgment, recorded with the county, which creates a lien on non-exempt real property.
- A writ of execution against non-exempt property.
- A garnishment action against the debtor’s bank account.
- For businesses still operating, a judgment on file often pushes payment because it shows up when they apply for credit or sell property.
Questions, answered
What is the small claims limit in Texas?
Texas justice courts hear small claims cases up to $20,000. That figure does not include statutory interest or court costs, so your total judgment can be slightly higher. If your invoice is above $20,000, you can sue for $20,000 and give up the rest, or file in county or district court.
Can an LLC file in Texas small claims court?
Yes. An LLC or corporation can file a small claims case in Texas justice court. It can be represented by an owner, officer, partner or employee, so you do not need a lawyer to appear for the company.
How much does it cost to file small claims in Texas?
Each county sets its own fees. Filing is often around $54, and serving the papers by constable or sheriff adds a separate fee. If you win, you can ask the court to add your costs to the judgment.
Can I garnish wages in Texas after winning small claims?
Not for an ordinary business debt. Texas only allows wage garnishment for a few kinds of debt, such as child support, taxes and some student loans. Collection usually goes through bank account garnishment, a lien on property, or a writ of execution.
Practicing barrister and founder of QuickAds. Built Easy Small Claims so small businesses can recover invoices they would otherwise write off.