Small Claims Court for an Unpaid Invoice: US & UK

Quick answer: To take an unpaid invoice to small claims court, first send a written demand letter giving a final deadline. If that fails, file a claim in the right court (within its money limit), pay the filing fee, serve the client and bring evidence: the contract, invoice, proof of delivery and your chase emails. US limits vary by state; in England and Wales you can usually claim online.

Going to small claims court over an unpaid invoice feels like a big step, but the process is designed for small businesses and freelancers without lawyers. This guide covers the demand letter, US state limits with examples, the UK online money claim process and fees, the evidence you need and what happens after judgment. It assumes you have already tried the friendlier steps in our guide to a client not paying an invoice. If you need to reissue the invoice cleanly before you start, use our free invoice generator.

Important: This is general information, not legal advice. Court limits, fees and procedures differ by state and country and change over time. Check your court's official website, and consider speaking to a lawyer or a free advice service before you file.

Is small claims court right for your unpaid invoice?

Small claims is a good fit when:

• the amount is within your court's limit,
• you can show what was agreed (a contract, quote, purchase order or emails),
• you can show you delivered the work,
• the client has no real complaint about quality, or you can answer it, and
• the client has money or assets, so a judgment can actually be collected.

If the client is insolvent or untraceable, a court win may be worth little. In that case compare the cost with using a collection agency, covered in sending an invoice to collections.

Step 1: Send a demand letter (letter before claim)

Before filing, send a formal written demand. In many US courts it is expected or required, and in England and Wales the courts expect you to follow pre-action steps, usually a letter before claim. Failing to do so can count against you, including on costs.

Your demand letter should include:

1. Your business name and the client's legal name and address.
2. The invoice number, date, amount and original due date.
3. A one-paragraph summary of what was agreed and delivered.
4. Any late fees or interest you are entitled to under your contract or the law. See late payment fees.
5. A clear deadline to pay, commonly 14 days in the US. In England and Wales, if the client is an individual (including a sole trader), the Pre-Action Protocol for Debt Claims applies and you should give 30 days and include the required reply form and information sheet.
6. How to pay, with your bank details.
7. A statement that you will file a small claim if not paid by the deadline.

Send it by email and by a tracked postal method, and keep proof of both. Many clients pay at this stage. If you need softer wording for earlier reminders, see our payment reminder emails.

Small claims limits in the US: examples by state

Each state sets its own maximum, and some set different limits for individuals and businesses. A few examples at the time of writing:

State	Small claims limit	Notes
California	$12,500 for individuals; $6,250 for businesses and other entities	Limits on how many claims over $2,500 you can file per year; proposals to raise limits have been discussed
Texas	$20,000 (justice court)	Excludes statutory interest and court costs, but includes attorney fees, according to the Texas State Law Library
Florida	$8,000	Excludes costs, interest and attorney fees

Limits change and local rules add conditions, so check your state judiciary's website before filing. If your invoice is above the limit, you can sometimes waive the excess to stay in small claims, but you cannot then claim the rest later. Splitting one debt into several smaller claims to dodge the limit is generally not allowed.

How to file a small claim in the US

1. Choose the right court. Usually the county where the client lives or does business, or where the contract was made or performed.
2. Name the defendant correctly. Use the client's exact legal name: the LLC or corporation, not just the trading name or your contact person. State business registries can confirm it.
3. Complete the claim form with the amount, a short description and the date the debt became due.
4. Pay the filing fee. Fees vary by state and amount; ask for it to be added to the judgment.
5. Serve the defendant using a method your court allows (certified mail, sheriff or a process server).
6. Prepare for the hearing with organized copies of your evidence for you, the judge and the defendant.
7. Attend the hearing. Be brief and factual: what was agreed, what you delivered, what you invoiced, what was paid.

Making a money claim in the UK (England and Wales)

In England and Wales, small debt claims go through the County Court. You can claim online using the government's money claim service (Money Claim Online and the newer online civil money claims service) or on paper form N1. According to GOV.UK's guide to making a court claim for money, you cannot claim online if, for example, you don't know the exact amount, you're claiming on behalf of more than one person or organization, you're claiming against three or more parties, or you or the defendant don't have an address in England or Wales.

UK court fees for money claims

Amount claimed	Issue fee
Up to £300	£35
£300.01 to £500	£50
£500.01 to £1,000	£70
£1,000.01 to £1,500	£80
£1,500.01 to £3,000	£115
£3,000.01 to £5,000	£205
£5,000.01 to £10,000	£455
£10,000.01 to £200,000	5% of the claim

These are the fees published on GOV.UK at the time of writing; a hearing fee may also be payable later if the claim goes to a hearing. Fees are reviewed periodically, so confirm before you pay. Claims of up to £10,000 are normally dealt with on the small claims track, where each side usually bears its own legal costs.

What happens after you claim

• The defendant normally has 14 days from service to respond, extended to 28 days if they acknowledge the claim.
• If they don't respond, you can usually request a default judgment.
• If they defend, the court may refer you to its free small claims mediation service before any hearing.
• If it isn't settled, a district judge decides the case, often at a short, informal hearing.

Interest on UK claims

You can generally claim simple interest at 8% a year on a County Court money claim. For business-to-business debts, the Late Payment of Commercial Debts (Interest) Act 1998 lets you claim statutory interest at 8% above the Bank of England base rate plus a fixed compensation sum, unless your contract sets a different arrangement. Scotland (simple procedure) and Northern Ireland have their own systems and limits.

Worked examples

US: a $4,800 design invoice

A freelance designer in Texas is owed $4,800 on an invoice 75 days overdue. Her contract allows a $50 late fee. The demand letter goes unanswered, so she files in justice court for $4,850 plus court costs. The claim is well under the $20,000 limit. She brings the signed proposal, the invoice, the client's approval email for the final files and her three reminder emails.

UK: a £3,600 invoice with interest

A UK consultant is owed £3,600 and claims simple interest at 8% for the 120 days since the due date: £3,600 × 8% ÷ 365 × 120 = £94.68. The total claim is £3,694.68, which falls in the £3,000.01 to £5,000 band, so the issue fee is £205. If the client is a business, the consultant could instead claim under the Late Payment Act, which may produce a higher figure.

Evidence checklist for an unpaid invoice claim

Evidence	What it proves
Signed contract, accepted quote or purchase order	What was agreed and the price
The invoice, with number, dates and terms	The amount and when it was due
Proof of delivery: files sent, sign-off email, delivery note, photos	That you did the work
Correspondence approving the work or changes	That the client accepted it
Reminders, statements and the demand letter	That you asked for payment and gave time
Any partial payments and remittance details	The exact balance outstanding
Notes of phone calls with dates	Promises to pay or complaints raised
Proof of the client's legal name and address	That you are suing the right party

A clean, itemized invoice helps. If yours was vague, our guide to the overdue invoice process and correcting an invoice explains how to fix errors without creating confusion about what is owed. A statement of account showing every invoice and payment is also useful in court.

After judgment: getting the money

Winning gives you a judgment, not cash. If the client still doesn't pay:

• US: depending on your state, options include wage garnishment, bank account levies, property liens and asking the court to examine the debtor about their assets.
• England and Wales: options include a warrant of control (enforcement agents), an attachment of earnings order, a third-party debt order against a bank account and a charging order on property. Each has a fee.

Judgments can also affect a debtor's credit record, which sometimes prompts payment.

Next step

Gather the evidence in the checklist into one folder, confirm the client's legal name and your court's limit, then send a dated demand letter with a final deadline. Attach a fresh copy of the invoice, for example from the classic invoice template, showing the original number, dates and the balance due.