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 Iowa, lawsuits to collect debts are typically filed in state courts, and small claims courts are often used for lower amounts of debt. The jurisdictional limit for small claims court in Iowa is $6,500, meaning that any claim for debt collection up to this amount can be filed in this court. Claims exceeding this limit must be filed in a higher court, such as district court. Small claims court is designed to be a simpler and more cost-effective venue for resolving disputes without the need for an attorney, although parties are allowed to have legal representation if they choose.