Small-claims courts work only when a person or firms are owed money that can be proved and have…

➤ What does it mean to say small-claims courts work only when money is owed and other procedures are exhausted — True or False?
Mostly true. Small-claims courts handle monetary disputes where a claimant seeks recovery of a debt or unpaid charge. You must prove the debt with documents and testimony. Courts rarely require that every possible collection attempt was completed, but showing demand letters or attempts to resolve the issue strengthens your case.