- Start with a letter of demand, which also serves as the offer of amicable resolution the courts expect.
- Smaller claims can go to the Small Claims Tribunals; larger ones go to the Magistrate's Court, District Court or High Court.
- A statutory demand is for clear, undisputed debts of at least S$15,000, not for debts in genuine dispute.
- Winning a judgment is not the end: you may still need to enforce it.
1. Ask, then demand
Before anything formal, check the paperwork: the contract or terms, the invoices, delivery records and any messages where the customer accepted the work or the amount. Then send a letter of demand setting out what is owed and a deadline to pay, commonly 7 to 14 days.
Under the Rules of Court 2021, you are expected to consider an amicable resolution, including mediation, before starting a court case. A letter of demand and a willingness to talk usually meet that expectation.
2. Bring a claim
If the debt is still unpaid, the right forum depends mainly on the amount:
- Small Claims Tribunals: claims up to S$20,000, or up to S$30,000 if both parties agree, mainly for disputes over the sale of goods and provision of services. Lawyers cannot represent parties there.
- Magistrate's Court: claims up to S$60,000.
- District Court: claims above S$60,000 up to S$250,000.
- General Division of the High Court: claims above S$250,000.
If the debtor does not respond to a court claim in time, you may be able to get judgment without a trial (default judgment). If they respond but have no real defence, you can ask for summary judgment. See our guide on default and summary judgment.
3. Statutory demand, for clear debts
Where the debt is clear and undisputed, and at least S$15,000, a statutory demand is another route. The debtor has 21 days to pay or otherwise satisfy the debt. If they don't, the law presumes they cannot pay their debts, and you may apply to wind up a company or make an individual bankrupt.
This is a serious step and is not a way to collect a debt that is genuinely disputed. Using it that way can be treated as an abuse of process.
4. Enforce the judgment
If the debtor still does not pay after judgment, you can apply to the court for enforcement orders, for example to seize and sell their property or to have money in their bank account paid to you. See our guide on enforcing a judgment.
Don't wait too long
Most claims for unpaid debts must be brought within 6 years of the date the debt fell due. Small Claims Tribunals claims have a shorter time limit. See our guide on time limits.
This article is general information on Singapore law and is not legal advice. Rules and agency policies change, and every situation is different. For advice on your own circumstances, speak with one of our lawyers.
All debts & business disputes guides
