What is the difference between a claim and a lawsuit?

Aaron J. Allen: A lawsuit is the formal process of filing a petition or a complaint in a court of law or an Administrative Law Court. It is a process where by you interrupt or stop the running of time necessary to bring your claim and recover, also called the statute of limitations.

It is also the required step before you can take your case in front of a judge or jury at a trial. Aclaim, on the other hand, is an informal process. It is used to avoid the formality associated with filing a lawsuit. It is a way to resolve and obtain recovery for damages or injuries, or resolve another dispute without the formal filing of a petition or processing through the court system.

It is a preferred way, and generally, is less costly and less time-consuming than the legal process of a pursuing a suit.