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 Michigan, lawsuits to collect debts are typically filed in state courts, and the venue depends on the amount of the debt. For smaller debts, creditors may file a claim in small claims court, which is a division of the district court designed to handle disputes involving limited amounts of money without the need for attorneys. As of my knowledge cutoff in 2023, the jurisdictional limit for small claims in Michigan is $6,500. This means that if the debt is $6,500 or less, the creditor can file the lawsuit in small claims court. If the amount exceeds the jurisdictional limit, the lawsuit must be filed in the appropriate district or circuit court, depending on the amount of the debt. It's important to note that the defendant has the right to request that the case be moved out of small claims court and into the regular civil division of the district court, where both parties can be represented by attorneys.