Small Claims Demand Letter Template

A small claims demand letter is a formal notice requesting payment to settle a dispute. It explains the reason for the demand and threatens the recipient with legal action in small claims court if the money isn’t paid. The maximum claimable amount in small claims court varies by state, generally ranging from around $5,000 to $20,000.

Small Claims Demand Letter Template

A small claims demand letter is a formal notice requesting payment to settle a dispute. It explains the reason for the demand and threatens the recipient with legal action in small claims court if the money isn’t paid. The maximum claimable amount in small claims court varies by state, generally ranging from around $5,000 to $20,000.

Last updated March 14th, 2025

A small claims demand letter is a formal notice requesting payment to settle a dispute. It explains the reason for the demand and threatens the recipient with legal action in small claims court if the money isn’t paid. The maximum claimable amount in small claims court varies by state, generally ranging from around $5,000 to $20,000.

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When to Use a Small Claims Demand Letter

A small claims demand letter is used when a person or company claims another party owes them money. It’s usually sent after the initial attempts to recover payment were unsuccessful but before filing a lawsuit in small claims court.

Some states have rules on what claims can and cannot be brought before the small claims court. In general, the small claims court handles disputes over:

  • Unpaid personal loans
  • Broken verbal or written agreements
  • Medical expenses from personal injury
  • Property damage
  • Security deposit refunds

Maximum Small Claim Amounts

Each state limits the dollar amount that can be sued for in small claims court. In some states, it may still be possible to file claims exceeding this limit, but the claimant loses the right to recover any additional damages in both the current case and future lawsuits.

The link below contains a state-by-state list of the maximum recoverable amounts as of this writing. Certain exceptions may apply; individuals should check with their local court to see if the claim is valid.

State Small Claim Limits

STATE MAXIMUM AMOUNT LAW
Alabama $6,000 § 12-12-31(a)
Alaska $10,000 § 22.15.040(a)
Arizona $3,500 § 22-503(A)
Arkansas $5,000 Guide to Small Claims Court
California $12,500 for individuals, $6,250 for entities §§ 116.220(a)(1), 116.221
Colorado $7,500 § 13-6-403(1)(a)
Connecticut $5,000 for money damages, $15,000 for home improvements contracts § 51-15(d)
Delaware $25,000 §§ 9301(1), (2)
Florida $8,000 Rule 7.010(b)
Georgia $15,000 § 15-10-2(a)(5)
Hawaii $5,000 § 633-27(a)
Idaho $5,000 § 1-2208(1)(a)
Illinois $10,000 Rule 281
Indiana $6,000 for a corporation, LLC, LLP, or trust, and $10,000 for all other matters Small Claims Manual, pp. 11 & 17
Iowa $6,500 § 631.1(1)(b)
Kansas $10,000 § 61-2703(a)
Kentucky $2,500 § 24A.230(1)
Louisiana $5,000 § 5202(A)
Maine $6,000 § 7482
Maryland $5,000 § 4-405
Massachusetts $7,000 Ch. 218 § 21
Michigan $7,000 § 600.8401
Minnesota $20,000, or $4,000 if the claim involves a consumer credit transaction § 491A.01(Subd. 3a)(a)
Mississippi $3,500 § 9-11-9
Missouri $5,000 Missouri Small Claims Court Handbook, p.1
Montana $7,000 § 25-35-502(1)
Nebraska $6,000 § 25-2802(4)
Nevada $10,000 § 73.010(1)
New Hampshire $10,000 § 503:1(I)
New Jersey $5,000 New Jersey Judiciary Small Claims, p. 1
New Mexico $10,000 § 34-8a-3(A)(2)
New York $5,000 in City Courts, $3,000 in Town and Village Courts, $10,000 in New York City, and $5,000 in Nassau and Suffolk Counties NY Courts – Small Claims
North Carolina $10,000 § 7A-210
North Dakota $15,000 § 27-08.1-01(1)
Ohio $6,000 § 1925.02(A)(1)
Oklahoma $10,000 § 1751(A)
Oregon $10,000 § 55.011(3)
Pennsylvania $12,000 Bringing Suit Before a Magisterial District Judge
Rhode Island $5,000 § 10-16-1
South Carolina $7,500 § 22-3-10
South Dakota $12,000 § 15-39-45.1
Tennessee $25,000 (no maximum for evictions or claims to recover personal property) § 16-15-501(d)
Texas $20,000 § 26.042(a)
Utah $20,000 § 78A-8-102(1)(a)(i)
Vermont $5,000 for a consumer credit transaction or medical debt, $10,000 for all other matters A Guide to Small Claims Proceedings in Vermont, p. 4
Virginia $5,000 § 16.1-122.2
Washington $10,000 for individuals, $5,000 for all other matters § 12.40.010
West Virginia $10,000 § 50-2-1
Wisconsin $10,000 for money claims, $5,000 for personal injury, $25,000 for consumer credit property claims, and $5,000 for non-consumer credit property claims § 799.01(1)(d), Wisconsin Court System – Small Claims
Wyoming $6,000 § 1-21-201

Sample

Download: PDFWord (.docx)OpenDocument

SMALL CLAIMS DEMAND LETTER

[SENDER NAME]
[SENDER ADDRESS]
[SENDER CONTACT INFO]

Date: [DATE]

[RECIPIENT NAME (AND TITLE, IF APPLICABLE)]
[RECIPIENT BUSINESS NAME (IF APPLICABLE)]
[RECIPIENT ADDRESS]

Re: Demand for Payment

Dear [RECIPIENT NAME],

I, [NAME OF PERSON SENDING LETTER], am sending this letter to notify you that you owe $[DOLLAR AMOUNT].

You owe this money for the following reasons: [DESCRIBE REASON FOR MONEY OWED].

A response to this letter is required by [DATE].

If you do not respond by the aforementioned date, all legal rights shall be explored without further notice, including, but not limited to, filing a lawsuit against you in small claims court to recover the debt or transferring the debt to a collection agency in accordance with state and federal laws.

This demand letter serves as official notice to you and may be tendered in court as evidence of your failure to pay. If legal action is to occur, it may involve having you pay attorney’s fees and may impact your credit history.

Sincerely,

________________________
[SENDER’S NAME (AND TITLE, IF APPLICABLE)]