Legal Question in Credit and Debt Law in California

Business Debt

I have a 1 person tiny business. I have been contacted by a collection agency about a $1,100 debt they claim I owe. I have responded to them that i am not responcible for the debt. They are now threatening me with legal action. I told them i would like to take my chance in small claims court and let a small claims judge hear my side, and make a decision. they asked me for my attorney's phone number. i told them that i don't have one and that it is my understanding they can only take this case to small claims court, where attorneys are not allowed. Am I right in thinking that this can only be heard in small claims court? or can they sue me in civil court? Again the collection is for only $1,100. Thank you


Asked on 8/19/08, 2:25 pm

1 Answer from Attorneys
David Gibbs The Gibbs Law Firm, APC

Re: Business Debt

Not exactly. Even though the amount involved is less than the statutory limit for Small Claims Court ($7,500), they are not required to use Small Claims Court. They can file the lawsuit in Superior Court, but for $1,100, its not likely that they will do so. Collection Agencies are generally pretty skilled at negotiating the Small Claims Court process so they don't really need to file in Superior Court with an attorney unless they are seeking something more than just monetary damages, or the case requires the use of the Superior Court.

*Due to the limitations of the LawGuru Forums, The Gibbs Law Firm, APC's (the "Firm") participation in responding to questions posted herein does not constitute legal advice, nor legal representation of the person or entity posting a question. No Attorney/Client relationship is or shall be construed to be created hereby. The information provided is general and requires that the poster obtain specific legal advice from an attorney. The poster shall not rely upon the information provided herein as legal advice nor as the basis for making any decisions of legal consequence.

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Answered on 8/19/08, 4:45 pm


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