What is small claims court and when should I use it for an unpaid invoice?

Dollar limits vary by state — from about $2,500 in some states to $25,000 in others — so the first step is confirming your unpaid balance falls within your state's threshold. Filing fees are usually $30 to $100. The hearing is informal: you present your invoice, contract, and communication records; the customer responds; and the judge issues a ruling, often the same day.

Winning in small claims court gives you a money judgment, not a check. If the debtor still does not pay, you may need to pursue a judgment lien or wage garnishment to actually collect — which adds more steps. Small claims court works best when the debtor is a solvent business or individual who has the money but has been avoiding payment. For debtors who have disappeared or have no assets, the judgment is often uncollectable in practice. This is general information, not legal advice.