5 Things to Do Before You Sue Someone

Think Before You File

Suing someone costs time, money, and energy. Before you file, make sure it's worth it. Here are the 5 things to check first.

1. Do You Have Evidence?

The strongest predictor of success in small claims court is evidence. Ask yourself:

• ✅ Do you have a written contract or agreement?

• ✅ Do you have invoices or receipts?

• ✅ Do you have text messages, emails, or written communication?

• ✅ Do you have photos, screenshots, or documentation?

• ✅ Do you have witnesses?

If you answered yes to 3 or more: Strong case. Proceed.

If you answered yes to 1-2: Decent case, but may need to strengthen your evidence before filing.

If you answered no to all: Very difficult case. The judge needs evidence, not just your word against theirs (though testimony does count as evidence).

2. Can You Actually Collect?

Winning a judgment is meaningless if the person has no money, no job, and no assets. This is called being "judgment proof."

Signs you CAN collect:

• They have a steady job (wages can be garnished)

• They own property (liens can be placed)

• They have a business (reputation matters, assets exist)

• They have vehicles in their name

Signs collection will be difficult:

• They're unemployed

• They rent their home

• They have no visible assets

• They've been sued before and haven't paid those judgments either

Important: A judgment lasts 10-20 years. Their situation may change. Today's broke deadbeat might own a house in 5 years — and your lien will be waiting.

3. Have You Sent a Demand Letter?

Never file in court without sending a demand letter first. Here's why:

1. Judges expect it. Many will ask "Did you try to resolve this first?"

2. It works. About 40% of debts get paid after a demand letter.

3. It's evidence. The letter and proof of delivery show you acted reasonably.

4. It's cheap. $49-75 for a letter vs. $200+ for filing and court time.

Always send via USPS Certified Mail with Return Receipt. Keep the receipt.

4. Are You Within the Statute of Limitations?

Every state has a deadline for filing lawsuits. If you wait too long, you lose the right to sue. Common timeframes:

• Written contracts: 4-6 years in most states

• Oral agreements: 2-4 years

• Property damage: 3-6 years

• Personal injury: 2-3 years

The clock usually starts from when the debt was due or when the breach occurred. If you're close to the deadline, file sooner rather than later.

5. Is It Worth Your Time?

Be honest about the cost-benefit analysis:

Filing costs:

• Filing fee: $15-100

• Service of process: $0-75

• Your time: At least half a day for the hearing

• Possible missed work

If you win, you get:

• The judgment amount

• Court costs reimbursed

• Possibly interest

Rule of thumb: If the debt is under $200, a demand letter is probably your best bet. Court isn't worth the time for very small amounts unless it's about principle.

For debts between $500 and $25,000, small claims court is almost always worth pursuing — especially if you have strong evidence and the debtor has assets.