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Small Claims
You should always try to settle your claim before going to court. After sending your demand letter, you should contact the opposing side to see if they will pay you before going forward. If settlement talks do not work, you should again try to settle after your claim is filed and served. A claim filed in court often gets the other side to take you seriously.
When thinking about settling, you should start by taking 10-20% off the payment owed in exchange for a quick settlement. This should get the other side to think about accepting the settlement. If all else fails, tell them you will resolve the matter in court.
If you reach an agreement, write down the terms of settlement. In exchange for paying you, the other party may ask you to sign a release giving up further claims against him. A release is very simple. Just write down that you will not sue the other side or claim other damages for the same case. Sign it only after you receive your settlement money.
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