For accounts under $5000, businesses and individuals may pursue collection through the small claims courts in the county where the defendant resides or where the contract was to be performed. These claims are filed in the city District Courts (formerly known as Municipal Courts).
Attorneys are not allowed to participate in small claims proceedings. Corporations may use small claims courts only if they have three (3) or fewer shareholders or are at least 85% owned by close family members. Collection agents, collection agencies,
and businesses that lend money at interest are forbidden from sue in small
Claims on written contracts must be filed within five years and on oral contracts within three years of the time the contract was broken.