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Small Claims for Small Business Owners

If individuals own a small business, small claims court may be helpful for collecting unpaid bills because owners do not need to go through bill collectors or lawyers, which could substantially reduce their net profit. Often the debtor fails to appear in court, and creditors may be entitled to a default judgment. But again, creditors need to be wary of collecting in the future, especially if the judgment debtor is another small business that may not be around in a few years.

Inside Small Claims for Small Business Owners