NY requires a demand letter be sent no less than 10 days prior to filing with the court. I strongly recommend reviewing the small claims requirements of your state/county or jurisdiction. The maximum amounts, requirements and time frames can greatly vary. I also found one clerk at the local court office to be rather helpful. My personal helpful hints:
You can only file 5 per month in NY, regardless of county. I file all 5 at once and (almost always) get the same court date for all 5. Otherwise, you may have to go to court for several hours for just 1 case. We sometimes file for the neighboring county as well. I wait until I have 5 for that county and follow the same process of filing all 5 together. I found that some courts are more of a hassle than others. You may need a notarized letter to prove that you may represent the practice in small claims court. Bring one with you just in case. Make sure you spell the patient's name, address, etc 100% accurate in any of the paperwork you file. Inaccurate information can mean starting the filing process over from the beginning.
In NY, the statute of limitations for debt is 6 years from the last date of payment. Even if the debt is OLDER, the patient must still show up to court to dispute it, or you get a default judgment.
If the patient doesn't show (typical situation), you have to wait for a specified amount of time (usually about 2 hours), and then present your information to the arbitrator or judge who will file a default judgment WITH INTEREST & FEES since the defendant did not show. While you're waiting, you get the free entertainment of hearing other cases.
If the patient does show, and you both agree, you meet with an arbitrator outside of the courtroom to see if you can come to an agreement (reduced amount, payment plan, etc). If you don't agree to arbitration or cannot come to settlement, then you both go before the judge who will make a final decision which will be sent via mail. I personally never agree to a reduced amount since BEFORE I file in court, I offer the patient a reduced bill by 30% to prevent this hassle in the first place. If you make me show up in court, I expect full payment. I am fine with payment plans.
Don't be late. Parking may be difficult. Everyone has to go through metal detectors/security, so allow sufficient time.
After the court date, you will get a judgment in the mail a few weeks later. That judgment is now legally enforceable for 20 years.
Here is the cover letter and demand letter I send at least 2 weeks before filing for small claims:
«CurrentDate»
«PatientFullName»
«GuarAddrLine1»
«GuarAddrLine2»
«GuarAddrCSZ»
Dear «PatientFirstName» «PatientLastName»,
We have notified you on numerous occasions regarding your outstanding balance due our office. Several unsuccessful attempts have been made to resolve this debt amicably. Enclosed is a demand letter which specifies the next steps being taken.
Failure to pay your debt or contact our office within 10 days will result in a legal complaint being filed against you. If we do not hear from you within the next 10 days, we will assume that you do not intend on making payment.
I am hoping that this is simply an oversight or a misunderstanding and would therefore appreciate you contacting our billing staff as soon as possible so that we may discuss this. Please contact our billing supervisor at (###) ###-#### ext. ###.
Sincerely yours,
Office Manager
Commercial Claim Arising Out of a Consumer Transaction
DEMAND LETTER
«CurrentDate»
«PatientFullName»
«GuarAddrLine1»
«GuarAddrLine2»
«GuarAddrCSZ»
You have not paid a debt owed to PRACTICE NAME, which you incurred on __DATE(S) OF SERVICE__. The amount remaining unpaid on the debt is $«TotalGuarantorDue». Demand is hereby made that this money be paid. Unless payment of this amount is received by the undersigned no later than __10 DAYS FROM CURRENT DATE____, a lawsuit will be brought against you in the Commercial Claims Part of the Court.
If a lawsuit is brought, you will be notified of the hearing date, and you will be entitled to appear at the hearing and present any defense you may have to this claim.
Our records show that you have made the following payment in partial satisfaction of this debt:
DATE PAYMENT
DATE PAYMENT
A copy of the original debt instrument – your agreement to pay – is attached.
PRACTICE NAME
PRACTICE ADDRESS
CITY, STATE ZIP
Good luck!!