Debt Collection
Complete guide to collecting money owed to you through small claims court.
Money Owed to You
Personal loans, unpaid invoices, bounced checks, and informal debts - small claims court can help you recover money that someone owes you.
What Small Claims CAN Handle
- •Personal loans not repaid (with or without written agreement)
- •Unpaid invoices for services or goods
- •Bounced checks and NSF payments
- •Money loaned to friends or family members
- •Informal agreements to repay
- •Partial payments owed on agreed amounts
What Requires Different Courts
- •Debts exceeding your state's small claims limit
- •Debts older than statute of limitations
- •Complex business disputes requiring discovery
- •Bankruptcy-protected debts
- •Fraud claims requiring criminal investigation
- •Wage claims (usually labor board)
Common Scenarios
Personal Loan Not Repaid
You lent money to a friend, family member, or acquaintance with an agreement to repay, but they haven't paid back as promised.
Unpaid Invoice
You provided services or goods, sent an invoice, but the customer or client hasn't paid despite reminders and demands.
Bounced Check
Someone gave you a check that bounced due to insufficient funds, and they haven't made good on the payment despite requests.
Money Owed by Family
A family member borrowed money for emergencies, bills, or other needs and hasn't repaid as agreed, creating an awkward situation.
Evidence You Should Gather
Strong documentation is critical for debt collection cases. The more proof you have, the better your chances.
Written Agreements
- Signed promissory note or loan agreement
- Invoices with payment terms
- Contracts for services/goods
- Written IOU or acknowledgment
- Payment plan agreements
Proof of Transfer
- Bank statements showing transfer
- Cancelled checks you wrote
- Venmo/PayPal/Zelle records
- Wire transfer confirmations
- ATM withdrawal receipts
Communications
- Texts admitting they owe money
- Emails discussing the loan
- Voicemails acknowledging debt
- Demand letters you sent
- Promises to pay messages
Bounced Check Evidence
- Copy of the bounced check
- Bank notice of NSF
- Record of bank fees charged to you
- Follow-up communication attempts
Critical Information About Debt Collection
Pro Tip: Send a Demand Letter First
Before filing, send a formal demand letter by certified mail. Many debtors pay when they see you're serious, and it shows the court you tried to resolve it.
Keep Records of Every Payment
Document any partial payments received. They acknowledge the debt and can reset the statute of limitations in some states.
Consider the Relationship Cost
Suing friends or family can permanently damage relationships. Consider if the money is worth the personal cost, and try mediation first.
Check Their Ability to Pay
A judgment is only valuable if the person can pay. Consider if they have assets, employment, or bank accounts that could satisfy a judgment.
Example Case + How This Site Helps
Example: A former client never paid your final invoice.
You delivered services, sent final invoices, and offered a payment plan. The debtor acknowledged the balance but still did not pay.
Typical claim range: $500-$7,500
What to collect first
- Invoice history and signed service agreement
- Messages where the debt is acknowledged
- Ledger of all partial payments and remaining balance
Confirm fit and priorities
Start with the quiz so the app can steer you toward the right dispute flow and state rules.
Take the quizOrganize evidence and timeline
Use Case Manager to track facts, deadlines, and uploads so your story is clear and ready for court.
Open Case ManagerPrepare your pre-filing package
Generate a demand letter and supporting documents to improve settlement chances before filing.
Build demand packagePlan filing and hearing prep
Use filing guidance, calendar, and statement tools so you can submit correctly and present clearly.
Review filing stepsReady to Collect What's Owed?
Take our intake quiz to organize your evidence and determine if small claims is the right path for your debt collection case.
Legal Disclaimer
This page provides general information only and is not legal advice. Laws vary by state and locality, and information may be outdated. No attorney-client relationship is created. Consult a licensed attorney for advice about your specific situation. See our Terms of Service and Privacy Policy.