The small claims limit is presently 5000. In small claims cases as a general rule you do not get your legal costs back, win, loose or draw. This means if you have a claim for less than 5000 you either have to pursue the claim yourself or hire a lawyer to do it for you in the knowledge that you are not going to recover the lawyer's fees.
Many lawyers operate debt recovery systems and charge fixed rates for suing debtors.
However if a case is defended the dreaded hourly rate kicks in which is where costs escalate. This article aims to point out a few practical steps that can be taken to avoid being landed with a bad debt and if it does prove necessary to litigate, how you can recover the money that is due to without the aid of a lawyer. Have and use proper standard or specific written terms and conditions. Information can be obtained over the telephone or on line. Obtain legal expenses insurance.