ConsumerWatch: Small Claims Victory Doesn't Guarantee Payout

SAN FRANCISCO (CBS 5) - Americans are increasingly taking their financial disputes to small claims court, but before you get your case heard, realize it might cost even more than you are owed to collect.

Some 20 percent of small claims judgments go uncollected, according to former attorney Ralph Warner, who said it's not always worth going to court to settle minor financial disputes. He also warns that hiring law enforcement, such as a sheriff, to help you collect can cost you money out of pocket, and it doesn't always work.

If you have trouble collecting on a claim, Warner suggests the following:

- If the person owns property, file a lien against that holding.
- If the individual is pulling a paycheck, try garnering their wages.
- If you are owed by a business, hire the sheriff to do a "till tap" to get the money out of their register.

Warner said that if none of these situations apply, it probably isn't worth suing in the first place.

Collecting on a small claims win can cost anywhere from $35 to more than $1,000, depending on the county and method of collection. Chances of collecting are slim if the other party has filed for bankruptcy.

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