Demand for Payment Letter
If You Need to Pursue the Matter in Court

In our sample demand for payment letters we outline the consequences
should the debtor fail to pay, which is to commence legal proceedings to recover the debt.

The most cost effective way would be to institute a claim through the small claims court. The fees are much lower (and you may well be able to claim it back from the defendant should you win your case) than if you were to engage the services of a lawyer and submit your case in a higher court.

What is Small Claims Court?

Simply put, it is a much less formal setting where a claimant can present his/her case without having to hire an attorney. The case will mostly be heard by a judge only and the decision may not be appealed, although there are exceptions to this in some jurisdictions.

In many jurisdictions you can do your submission online but it may also be a prerequisite to have written a letter of demand to the debtor first and go through a mediation process before taking the case to court.

Review the legal guidelines for your demand for payment letter and our sample demand letters to assist you in compiling your documents.

To pursue your claim in a Small Claim Court or Disputes Tribunal, you need to confirm your claim is within the maximum limit. Below are a brief overview with links to the courts in various jurisdictions.

If your claim is over the stated limits but you are prepared to accept no more than the limit, then you can still proceed in the small claims court. However, you cannot at a later time then sue the debtor for the balance or divide the claims into multiple cases.

Generally your claim will be for money. So you cannot ask the court to make the defendant perform an act e.g. retile your bathroom, or not do an act e.g. stop parking in your driveway. In some courts you may file a warrant in detinue i.e. to obtain possession of your property which is being wrongfully held by the defendant.

Persons not directly involved with a claim may not act during the trial, unless it is the parent or guardian representing a person under the age of 18. You also need to check whether you are allowed to hire an attorney in your jurisdiction. Incidentally, if either the claimant or the defendant is in fact an attorney, the other party may be allowed to have legal representation even where not allowed - check with your court!

You can call upon witnesses to testify and ask the court to subpoena an unwilling witness.

Be sure the defendant can actually afford to pay your claim. It will be a waste of time to win judgment against a debtor who is unemployed or who has no property.

Navigate to your country specific Small Claims Court by scrolling down this page or clicking on the jump links below:

USA - United Kingdom - Canada

Australia - South Africa - New Zealand

United States of America

The limits are state specific, ranging from $2,500 to $25,000 but there may be no limit in eviction cases in some states.

Some states do allow a jury trial but that generally takes more time than a trial by judge alone.

Court officials can advise on the process and assist with completion of the necessary forms but may not give any legal advice. You may consult with an attorney prior to your case going to trial.

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United Kingdom

England and Wales

HM Courts and Tribunals Service has their Money Claim Online for both claimants and defendants (limited to GBP 10,000). You will also find very clear guidelines on how to issue a claim or respond to a claim and how to follow on should the defendant pay or not respond.

Scotland and Northern Ireland

In Scotland the limit is up to GBP 3000,00 and in Northern Ireland the limit is also GBP 3000,00 and you can use their online services after registering.

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Canada

The courts are designed for citizens to handle their own cases without need for an attorney. The forms are easy to use and the sites (links provided below) provide clear instructions to assist you with your case.

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Australia

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South Africa

The limit in South Africa is R15,000 and you need to appear in court in person and cannot have a legal professional to act on your behalf.

Documents and forms are available from the government site

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New Zealand Disputes Tribunal

The limit in New Zealand is $15,000 (or $20,000 if all the parties agree).

You can seek legal advice prior to your case but need to make your case yourself in the hearing.

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The process itself of taking to someone to small claims court is relatively easy (carefully read through each jurisdiction's online information) but that does not mean it is a quick process. It does take time! Accept that and wait for the wheels of justice to do its turning - you have nothing to lose if your case has merit.

If your claim is above the limit of the small claims court, consider claiming a lesser amount, in order to make use of the small claims system.

One more note: Quite often Government sites get updated and pages are moved without leaving redirecting links in place. If you find any of the links on this page not working, please drop us a quick note - it would be a great help. You can use the Facebook comment function at the bottom of this page or use the Contact link above right. Thanking you in advance!

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