Legal recourse · Small claims

Suing for an unpaid invoice: small claims court for contractors

Updated June 2026 · 5-minute read

Small claims court is the contractor's no-lawyer path to a money judgment on an unpaid invoice. It's cheap to file, relatively fast, and designed for people to represent themselves. The catch: dollar limits vary by state (often $5,000–$15,000), and winning a judgment isn't the same as getting paid. Here's how to file — and how to actually collect afterward.

How to take an unpaid invoice to small claims court

1 Check your state's dollar limit

Small claims caps the amount you can sue for — often somewhere between $5,000 and $15,000 depending on the state. If you're owed more, you either waive the excess to stay in small claims (often worth it for speed) or move up to civil court. Confirm your state's current limit first.

2 Send a demand letter first

Courts expect you to have tried to resolve it, and a formal demand often settles the case before you ever file. Keep a copy — showing the judge you gave clear written notice and a deadline strengthens your case and your credibility.

3 File in the right court

You generally file where the customer lives or where the work was done. Pay a small filing fee (often $30–$100), fill out the claim describing the debt, and the court arranges to serve the customer. Get the venue right or your case can be dismissed.

4 Bring your evidence

Show up organized: the signed contract or estimate, every invoice, before/after photos, texts and emails, and proof the work was completed. Small claims judges decide fast and reward the party who makes the timeline obvious. Most contractors who document well, win.

5 Win — then actually collect

A judgment is permission to collect, not a check. If they still won't pay, you enforce it: wage garnishment, a bank levy, or recording the judgment as a lien against their property. Ask the court clerk about post-judgment collection tools in your state.

The real fix: never chase payment again

Did the work. Got stiffed. — stop it before it starts.

Small claims works, but it's days off the job, filing fees, and a judgment you may still have to chase. PaidUp removes the risk entirely: the customer's card is authorized before you start and captured when you finish, so there's no invoice to sue over. We're building it now for US tradespeople.

Join the PaidUp waitlist →

FAQ

How much does small claims court cost?

Filing fees are typically modest — often $30–$100 depending on the state and claim size — plus possible service fees. Many courts let the winner recover the filing fee. It's one of the cheapest legal tools available to a contractor.

Do I need a lawyer for small claims?

No — small claims is specifically designed for self-representation, and some states don't even allow lawyers in it. Bring organized evidence and a clear timeline. The process favors prepared people, not legal expertise.

What if they don't show up or still don't pay?

If they don't appear, you usually win by default. Either way, the judgment isn't automatic cash — you may need wage garnishment, a bank levy, or a property lien to collect. Ask the clerk about enforcement options in your state.

This is general information for tradespeople, not legal advice. Lien deadlines, small-claims limits, and collection rules vary by state — check your state's rules or talk to a local attorney before acting.