Lawsuits to collect debts are usually filed in state courts—and may be filed in small claims courts, depending on the amount of the debt and the small claims court’s jurisdictional limits (the maximum amount of a claim that can be filed in the court).
In California, lawsuits to collect debts are typically filed in the state's civil courts. The court in which a debt collection case is filed depends on the amount of the debt. For smaller debts, the case may be filed in small claims court, which is designed to be a faster and less formal venue for resolving disputes involving smaller amounts of money. As of 2023, the jurisdictional limit for small claims court in California is $10,000 for individuals and sole proprietors, but it is lower for corporations and other entities, which have a limit of $5,000. Claims exceeding the small claims court's jurisdictional limits must be filed in the appropriate superior court. It's important to note that there are specific procedures and rules that govern the process of filing a lawsuit in both small claims and superior courts, including statutes of limitations for debt collection, which an attorney can help navigate.