Full question:
Is sending someone to small claims court the only way to collect money owed to me. This is a personal matter not business. I had sent this person 3 letters regarding this debt, and never heard a response.
- Category: Debts and Credit
- Date:
- State: Virginia
Answer:
If you have a promissory note, it may include a security interest in the debtor's property, which can be collected in case of nonpayment. This property is known as collateral. Additionally, a cognovit clause can allow the debtor to waive defenses and agree to a judgment against them if they fail to pay.
If you lack a secured promissory note or cognovit clause, and the person isn't responding to your letters, your main option may be to file a lawsuit. Depending on the amount owed, you can bring a claim in a general jurisdiction court. However, if the debt falls within the limits of small claims court, that route may be simpler and less costly.
This content is for informational purposes only and is not legal advice. Legal statutes mentioned reflect the law at the time the content was written and may no longer be current. Always verify the latest version of the law before relying on it.