How to Respond When You Are Sued in Small Claims

You can settle the case by paying the other side or returning their property. This avoids having to go to court and pay extra fees.

Here's how to settle outside of court

1. Pay the full amount within 30 days, including the other side's court costs. Or, if the case is about property, return the property to the other side.
2. Tell the court you settled the case. Here's how to do that:
   1. Fill out the Defendant's Response form and check "PAYMENT OF CLAIM."
   2. Attach proof of payment (like a copy of a check).
   3. Make a copy of your paperwork for your records.
   4. File your forms within 30 days at the courthouse listed on the "Notice of Claim" form.
   5. Pay a filing fee, or if you can't afford the fee, fill out a fee waiver application.

Tip: If you can't afford the full amount, try to work out a payment plan with the other side. If they agree, tell them you will report to the court that the claim has been paid. Then, complete the steps above.

Next steps:

• Call the court within a week to make sure the case is closed and there's nothing else you need to do.

If you don't believe you owe the money or the amount listed in the claim is wrong, you can deny the claim and go to court.

Here's how to deny the claim:

1. Fill out the Defendant's Response form and check "DENIAL OF CLAIM."
2. Make a copy of your paperwork for your records.
3. File your forms within 30 days at the courthouse listed on the "Notice of Claim" form.
4. Pay a filing fee, or if you can't afford the fee, fill out a fee waiver application.

What happens next: 

What happens next depends on the county where the case was filed:

• Court hearing: Some counties schedule a court hearing after you file your response form. You will receive a notice by mail with the date, time, and location. You must attend the hearing, or the court may decide in favor of the other side.
• Mediation, then court hearing: Some counties require you to attend mediation before the court schedules a hearing. Mediation is a court-sponsored meeting with a neutral professional who tries to help you and the other side come to an agreement without a court hearing. If that doesn't work, the court will schedule your hearing.

Learn how to prepare for your small claims hearing here.

If you believe the other side owes you money or property related to the same issue, you can sue them back and have both cases decided at the same hearing. This is called a counterclaim.

For example, say you are being sued by a mechanic who says you didn't pay them for work on your car. You might have a counterclaim if they didn't actually fix the problem with your car and instead damaged your vehicle's engine. 

To disagree and file a counterclaim:

1. Fill out the Defendant's Response form:
   1. Check the "COUNTERCLAIM" box on the "Defendant's Response" form.
   2. Clearly explain why the other side owes you money or property.
   3. List the exact amount the other side owes you.
2. Make a copy of your paperwork for your records.
3. File your forms within 30 days at the courthouse listed on the "Notice of Claim" form.
4. Pay a filing fee, or if you can't afford the fee, fill out a fee waiver application.

What happens next: 

What happens next depends on the county where the case was filed:

• Court hearing: Some counties schedule a court hearing after you file your response form. You will receive a notice by mail with the date, time, and location. You must attend the hearing, or the court may decide in favor of the other side.
• Mediation, then court hearing: Some counties require you to attend mediation before the court schedules a hearing. Mediation is a court-sponsored meeting with a neutral professional who tries to help you and the other side come to an agreement without a court hearing. If that doesn't work, the court will schedule your hearing.

Learn how to prepare for your small claims hearing here.

If you ignore the case, the other side will win automatically. All they need to do is fill out more papers telling the court you didn't respond. This is called a default judgment. 

If the other side gets a default judgment, they can take additional steps to take money from your paycheck or bank account (called garnishment) or go after your property. Learn more about garnishment here.

Tip: If you have very little money or belongings and your only income is from Social Security disability, you might be judgment-proof or collection-proof. If you're collection-proof, this means your money can't be taken to pay debts. Learn more about being collection-proof here.