Sue for an Unpaid Invoice in Kentucky Small Claims Court

You finished the work. You sent the invoice. Thirty days passed, then sixty, then ninety. Now the client won't answer your calls, and you're out hundreds or thousands of dollars that your business needs to survive.

Kentucky's Small Claims Division lets sole proprietors and small businesses recover unpaid invoices up to $2,500 without hiring an attorney. The process is straightforward, but there are a few business-specific rules that can trip you up.

Business Filing Rules in Kentucky Small Claims

The Small Claims Division has specific rules about who can file and how often:

Sole proprietors file under their own legal name. If you operate under a DBA (doing business as), you still file as yourself — "Jane Smith d/b/a Smith's Plumbing," for example. The complaint must name you personally.

LLCs and corporations can appear in Small Claims Division through a full-time officer or regular employee under KRS 24A.240. This is a specific exception to the general rule requiring attorney representation for business entities. The person who appears must be a genuine employee or officer, not a hired legal representative.

Partnerships can be represented by a general partner.

The 25-claim annual cap under KRS 24A.250 limits any individual or entity to 25 small claims filings per calendar year across all Kentucky District Courts. If your business regularly files collection claims, track your count carefully. Government entities are exempt from this cap.

Collection agencies and assignees are barred. Claims brought by collection agencies or assignees are excluded from Small Claims Division. If a debt has been sold or assigned, get legal advice about who owns the claim and where it can be brought.

What You Need Before Filing

Unpaid invoice cases are among the strongest in small claims court — the evidence is usually clear-cut. But you need to organize it properly:

The invoice itself. This is your primary document. It should show the date of service, a description of the work performed, the amount due, and the payment terms. If you invoiced electronically, print the email or platform record showing when it was sent and received.

Proof of the agreement. A signed contract or written agreement is ideal. If the arrangement was verbal, text messages or emails confirming the scope of work and agreed price serve the same purpose. An email chain where the client says "yes, go ahead with the $2,000 estimate" is a written record of the agreement.

Proof the work was delivered. Signed delivery receipts, completion photos, email confirmations from the client acknowledging receipt of goods or completed work, or signed change orders.

Your payment history. If the client made partial payments, bring records showing what was paid and what remains outstanding. Bank statements or payment platform records work.

The demand letter and delivery proof. Before filing, send a formal demand letter by certified mail giving the client 10–14 days to pay. The return receipt proves they received it. Judges expect to see that you tried to collect before coming to court.

Statute of Limitations for Invoices

Don't sit on an unpaid invoice forever. Kentucky's statutes of limitations set hard deadlines:

• Written contracts (including signed proposals, purchase orders, formal agreements): 10 years under KRS 413.160 for contracts signed after July 15, 2014
• Oral agreements and informal arrangements: 5 years under KRS 413.120
• Sales of goods under the UCC: 4 years under KRS 355.2-725

The applicable accrual date can depend on the facts of the claim. Confirm the deadline promptly rather than waiting until the end of the stated limitation period.

Filing Steps

1. Identify the defendant's legal name. If your client is a business, search the Kentucky Secretary of State portal at sos.ky.gov. Sue the legal entity name and serve the registered agent. Suing a trade name without the underlying entity is a procedural error that can make your judgment unenforceable.

2. File Form AOC-175 at the District Court clerk's office. For a contract claim against an individual, file in the county where the defendant resides. For a corporate defendant, venue may be based on the principal office, registered-agent residence, or where the transaction occurred or contract was executed or breached. The statewide base filing fee is $68, plus local fees and service costs.

3. Describe the claim clearly. In the AOC-175's statement of claim, keep it factual: "Defendant hired plaintiff to [describe work]. Work was completed on [date]. Invoice #[number] for $[amount] was issued on [date] with net-30 terms. Defendant has not paid despite written demand delivered on [date]."

4. Serve the defendant through the clerk's certified mail or sheriff service. If your client has been dodging your collection attempts, sheriff personal service ($60) is more reliable than certified mail — an unclaimed letter doesn't count as valid service.

At the Hearing

Unpaid invoice cases are typically quick. Present your evidence in order: the agreement, proof of completed work, the invoice, proof the invoice was delivered, the demand letter, and proof the demand was received. If the client doesn't show up after valid service, the judge will hear your evidence and can enter a default judgment.

If the client does show up, they'll usually argue either that the work wasn't completed satisfactorily or that the amount is wrong. Your documentation — especially photos of completed work and any written sign-off from the client — counters these defenses.

The judge can award up to $2,500 plus court costs. Prejudgment interest may be requested on liquidated damages, but entitlement is subject to judicial review.

Streamline Your Filing

When you're running a business and chasing a deadbeat client, the last thing you need is to waste hours figuring out court paperwork. The Kentucky small claims filing guide gives you a step-by-step workflow from demand letter through service of process to hearing prep — designed for busy sole proprietors and small business owners who need to get it right the first time.

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