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 Pennsylvania, lawsuits to collect debts are typically filed in the Court of Common Pleas, which is the state trial court of general jurisdiction. However, if the amount of the debt is within the jurisdictional limits of the small claims court, known in Pennsylvania as the Magisterial District Court, the lawsuit may be filed there instead. The Magisterial District Court handles claims for amounts up to $12,000, not including interest and costs. This provides a more informal and less expensive venue for debt collection cases involving smaller amounts. It's important for plaintiffs to consider the jurisdictional limits when deciding where to file a lawsuit to collect a debt. Defendants in debt collection cases have certain rights and may have defenses available to them, so consulting with an attorney can be beneficial for both parties involved in the litigation.