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lawsuit to collect debt

Lawsuits to collect debts are usually filed in state courts—and may be filed in small claims courts, depending on the amount of the debt and the small claims court’s jurisdictional limits (the maximum amount of a claim that can be filed in the court).

In Vermont, lawsuits to collect debts are typically filed in state courts, and the venue chosen depends on the amount of the debt. Small claims court is an option for debt collection if the amount of the debt falls within the court's jurisdictional limits. As of the knowledge cutoff in 2023, the maximum amount that can be claimed in Vermont's small claims court is $5,000. This limit is set to ensure that small claims courts handle only minor financial disputes, allowing for a faster and less formal resolution process compared to higher courts. If the debt exceeds the jurisdictional limit of the small claims court, the lawsuit must be filed in a higher court, such as the Superior Court. It's important for creditors to choose the correct court when filing a lawsuit to collect a debt, as filing in the wrong court may result in the case being dismissed or transferred.

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Creditor / Debtor

lawsuit to collect debt

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Vermont State Code

Vermont State Code

Creditor / Debtor

lawsuit to collect debt

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