Any small business owner can tell you that collecting overdue receivables is a major hassle.  Sometimes, the amount at issue doesn't justify hiring an attorney.  So, what do you do?  Write off the uncollectable account or proceed in court on your own?  What if your small business is sued in Small Claims Court, can you represent yourself?  The answer depends on the amount in controversy and the type of business structure under which you operate.    

Under Illinois Supreme Court Rule 281, Small claims matters are limited to claims of $10,000 or less, exclusive of interest and costs.  Notably, a corporation cannot appear as a claimant unless represented by counsel.  However, a corporation can defend itself, provided the amount at issue is less than $10,000, and it does not wish to assert a counterclaim.  

In summary, a corporation will need to retain counsel to initiate any collection action in the Circuit Court, regardless of the amount at issue.  However, if a small business is sued in Small Claims Court, the owner can usually represent the company (even if it is a corporation) provided that it will not file a counterclaim and the amount in controversy remains at $10,000 or less.

Contact us at 312-419-9599 to discuss your collections issues.