how does small claim court work in houston texas?

Basically, you go to the courthouse, and fill out the forms they will give you. There are people there who can answer questions, but the forms are actually pretty simple. It is designed to work without lawyers, so you are not expected to state things in great detail or in legal language. You just need to explain briefly and clearly why you are suing. "John Jones agreed to pay me $1,000 to repair his garage. I finished the work in July 2010, and I have still not been paid." If you have any evidence on paper, like a contract, a cancelled check, photos, etc., have *copies* made. Your claim should be for the cost of the work/contract, PLUS the cost of filing the lawsuit, plus any expenses, such as for copying.

If you win the case, the judge will order the other person to pay. If he doesn't do that, you can have the sheriff seize his assets and auction them off, assuming he has any. All too often, people don't pay what they owe because they have no money to pay with. But if he has a car or other easily sellable asset, that can be seized. If he has real estate, you can put a lien on the property.

And yes, having a judgment recorded against him will damage his credit history badly, at least if it doesn't get paid right away.