Small Claims Court Reform - WIB Supports

For many small, independent businesses, the process of collecting the outstanding debt is time consuming and expensive.

Under Wisconsin law, small businesses can file a claim in small claims court to recover up to $5,000 in outstanding debt. Typically in small claims court these cases are resolved quickly. The small business owner collects the amount owed without the need for expensive legal services. However, if the amount of the outstanding debt exceeds $5,000, the small business must file a claim in circuit court. Resolving these claims in circuit court requires legal representation and the legal process is often a drawn out affair. In many cases, the cost of the legal services to collect the debt exceeds the actual amount of debt.

Since 1995, the jurisdictional limit for small claims court has been set at $5,000. The costs of goods and services have risen significantly in the past sixteen years and small businesses need access to a court system which recognizes this fact.

WIB supports legislation to raise the small claims court jurisdictional limit to at least $8,000.