Yes, you can take someone to court for owing you money by filing a civil lawsuit for the unpaid debt, usually as a breach of contract claim. For smaller amounts, small claims court is the standard route; for larger sums, you file in general civil court. Winning is one step; actually collecting the money is another, and both depend on decisions you make before you ever file.
When You Actually Have a Case
A debt lawsuit rests on a simple idea: someone agreed to pay you money and didn’t. That agreement can be a written contract, a signed promissory note, or a verbal promise. Written agreements are easier to prove because you can point to specific terms, but oral agreements are enforceable too, as long as you can show what was agreed.
The bigger threshold question is timing. Every debt lawsuit has to be filed within the statute of limitations, which varies by state and by the type of agreement. Most fall between three and six years.1Consumer Financial Protection Bureau. Can Debt Collectors Collect a Debt Thats Several Years Old? Oral contracts often have shorter deadlines than written ones. A state might allow three years to sue on a verbal agreement and five years on a written contract. Once that window closes, a court will likely dismiss your case even if the debt is real.
Some debtor actions can restart or pause the clock. In many states, a partial payment on a written debt restarts the limitations period. A written acknowledgment — a letter, email, or text promising to pay — can also reset the deadline. If the debtor leaves the state or hides to avoid being served, the clock may pause until they can be located.
Which Court to File In
The amount at stake decides where your case goes. Small claims court handles straightforward disputes below a dollar limit set by your state, which ranges from roughly $5,000 to $25,000 or more. It’s faster, cheaper, and less formal. In many jurisdictions attorneys aren’t even allowed to represent parties, so both sides speak directly to the judge.
If your claim exceeds the small claims limit, you file in general civil court, sometimes called district or superior court. These courts allow formal discovery — requesting documents, taking depositions, and compelling the other side to produce evidence. Filing fees are higher, the process is slower, and hiring an attorney becomes more practical. A case that would wrap up in a single small claims session can take months or over a year in general civil court, which is one reason many people accept the small claims limit even when their debt is somewhat larger.
Evidence You’ll Need
You carry the burden of proof. The standard is preponderance of the evidence, meaning the judge needs to find it more likely than not that your version is true.
Written documentation is the strongest form of proof: a signed promissory note, an IOU, an invoice, or a contract listing the amount, repayment date, and any interest rate. Bank statements, canceled checks, and digital transfer receipts from payment apps show that money actually changed hands.
Communications where the debtor acknowledges the balance carry a lot of weight. Text messages, emails, or social media conversations in which the debtor asks for more time, confirms the amount, or proposes a payment plan all support your claim. If nothing about the original agreement is in writing, testimony from someone who witnessed the conversation can help. A clear ledger showing the original amount, any payments received, and any interest you’re claiming lets the judge calculate exactly what you’re owed.
Before You File
Send a Demand Letter
Send the debtor a formal demand letter before filing anything. Include the exact amount owed, the reason for the debt, and a clear deadline. Send it by certified mail with a return receipt so you can prove delivery. Some states require a demand letter before you can sue, and judges tend to view plaintiffs more favorably when they’ve shown a good-faith attempt to resolve things without court involvement.
Identify the Debtor Correctly
You need the debtor’s correct legal name and current address. For individuals, use the full legal name, not a nickname. For businesses, search your state’s Secretary of State records to find the registered agent, who is the person authorized to receive legal documents on the company’s behalf. Getting this wrong can sink your case before it starts.
Consider Mediation or a Settlement
Before committing to a lawsuit, think about mediation. A neutral third party helps both sides negotiate; the mediator doesn’t decide anything, just guides the conversation.2United States Court of Appeals for the Fourth Circuit. Preparing for a Mediation It’s faster, cheaper, and less adversarial than trial, and some courts require it before scheduling a hearing. Even an informal offer — accepting a lower lump sum or a payment plan — can save you months of legal process and the trouble of collection afterward.
Filing and Serving the Lawsuit
Filing Your Claim
Start by getting a complaint or statement of claim form from your local courthouse or its website. The form asks for a short description of the debt, the facts behind your claim, and the exact dollar amount you’re seeking, including any late fees or interest allowed by your agreement or by law. Once you submit it, the clerk assigns a case number and issues a summons.
Filing fees depend on the court and the size of the claim, generally from about $30 to several hundred dollars. If you can’t afford the fee, ask the court to waive it by filing a fee-waiver request, sometimes called a petition to proceed “in forma pauperis.” Eligibility rules vary. Some states look at whether you receive public benefits, others use the federal poverty level, and some leave it to the judge.
Serving the Defendant
After filing, you have to deliver the summons and complaint to the debtor through a formal process called service of process. You can’t serve the papers yourself. Under federal rules, any person at least 18 years old who isn’t a party to the case can deliver them.3Cornell Law School Legal Information Institute. Federal Rules of Civil Procedure Rule 4 – Summons Most plaintiffs hire a professional process server or ask a local sheriff’s deputy to make the delivery. The server then files proof of service — a sworn statement confirming the delivery — with the court.
Deadlines are strict. Under federal rules, you have 90 days from filing to serve the defendant; missing the deadline can get your case dismissed.3Cornell Law School Legal Information Institute. Federal Rules of Civil Procedure Rule 4 – Summons State deadlines vary, but the 30- to 120-day range is common. A service mistake, even a small one, can end your case before a judge hears anything about the merits.
What Happens After the Debtor Is Served
If the Debtor Responds
The defendant typically has 20 to 30 days after being served to file a written answer with the court. If they respond, the court schedules a hearing or trial. In small claims, both sides present directly to the judge, show their evidence, and answer questions. There’s no jury, and the whole thing usually finishes in one session. In general civil court, expect a discovery phase, possible pretrial motions, and a longer runway to trial.
If the Debtor Ignores the Lawsuit
If the defendant doesn’t file an answer in time, you can ask the court for a default judgment. First you ask the clerk to enter a “default,” confirming the missed deadline. Then you apply for the default judgment itself; the court may grant it on your paperwork alone, or hold a brief hearing to hear evidence of the amount owed.4Cornell Law School Legal Information Institute. Federal Rules of Civil Procedure Rule 55 – Default; Default Judgment A default judgment is legally enforceable just like any other judgment.
Watch for Counterclaims
A debtor who responds can file a counterclaim against you. Common ones include arguing that you breached the same contract by failing to deliver promised services, or alleging consumer-protection violations in a commercial transaction. If the debtor wins on a counterclaim, you could end up owing them. If your contract includes a prevailing-party attorney-fee clause, the losing side may also pay the winner’s legal costs. Before filing, take an honest look at whether the debtor has grievances that could turn into a counterclaim.
Collecting After You Win
A judgment confirms the debt legally, but the court doesn’t collect it for you. If the debtor won’t pay voluntarily, you have to enforce the judgment yourself through additional filings, each with its own fee, generally from under $50 to several hundred dollars.
Finding the Debtor’s Assets
Before choosing a collection method, you may need to find out what the debtor owns. Courts allow a debtor’s examination, sometimes called a judgment debtor exam or supplementary proceedings, where the debtor has to appear and answer questions under oath about income, bank accounts, property, and other assets. What you learn tells you which collection tool makes sense.
Wage Garnishment
A writ of garnishment directs the debtor’s employer to withhold part of each paycheck and send it to you. Federal law caps garnishment for ordinary debts at the lesser of 25% of disposable earnings or the amount by which weekly disposable earnings exceed 30 times the federal minimum wage of $7.25 per hour, which protects $217.50 per week. Some states set lower limits, and the stricter rule applies. Garnishment for child support or alimony follows separate, higher caps of up to 50% or 60% of disposable earnings depending on the debtor’s other support obligations.5Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment
Bank Account Levies
A bank levy lets you freeze and withdraw funds directly from the debtor’s account. Once you obtain the levy, the bank freezes funds up to the amount owed and eventually transfers them to you. The debtor may claim exemptions to protect certain funds, such as Social Security benefits deposited in the account.
Property Liens
A judgment lien attaches your claim to the debtor’s real estate. The lien creates a security interest, preventing the debtor from selling or refinancing until the judgment is paid.6Legal Information Institute. Judgment Lien – Wex – US Law You usually get paid when the property changes hands, which may take time, but the lien preserves your claim in the meantime.
Post-Judgment Interest
Judgments accrue interest from the date they’re entered, so the amount owed grows over time.7Office of the Law Revision Counsel. 28 USC 1961 – Interest State courts set their own rates, which can be higher than the federal rate. Interest is computed daily and compounded annually, so a debtor who drags things out ends up owing more than the original judgment.
How Long a Judgment Lasts
Judgments don’t last forever. Most state judgments remain enforceable for somewhere between 5 and 20 years, and many states let you renew a judgment before it expires to keep your collection rights alive. If you win but can’t collect right away because the debtor has nothing to take, you can wait and try again later, as long as the judgment is still active. Track your state’s expiration date so you don’t lose the right to collect.
When Suing May Not Be Worth It
Judgment-Proof Debtors
Some debtors have no income or assets that can legally be seized, making them effectively “judgment proof.” Federal law protects several categories of income from garnishment for private debts, including Social Security benefits, Supplemental Security Income (SSI), veterans’ benefits, and most federal retirement benefits.8Social Security Administration. SSR 79-4 – Sections 207, 452(b), 459 and 462(f) – Levy and Garnishment of Benefits State exemption laws typically protect workers’ compensation, unemployment insurance, public assistance, and basic household goods. If the debtor’s only income comes from protected sources and they own no non-exempt property, a judgment may not lead to actual money any time soon.
Before filing, weigh whether the debtor realistically has the means to pay. Spending money and time to obtain a judgment you can’t collect may not make sense, though a judgment stays enforceable for years and the debtor’s finances could improve.
If the Debtor Files for Bankruptcy
If the debtor files for bankruptcy at any point, before, during, or after your lawsuit, an automatic stay immediately halts most collection efforts. The stay stops you from continuing a lawsuit, enforcing a judgment, garnishing wages, or levying accounts.9Office of the Law Revision Counsel. 11 USC 362 – Automatic Stay If the bankruptcy succeeds, the debtor’s obligation to pay may be permanently wiped out through discharge.
Not everything is dischargeable. Debts obtained through fraud, false pretenses, or false financial statements generally survive bankruptcy.10Office of the Law Revision Counsel. 11 USC 523 – Exceptions to Discharge If you believe the debtor took the money through deception, you can challenge the discharge by filing a separate action in the bankruptcy court. Debts for willful and malicious injury, certain tax obligations, and domestic support obligations also survive.