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 Wisconsin, lawsuits to collect debts are typically filed in state courts, and the venue depends on the amount of the debt. Small claims court is used for claims that do not exceed the jurisdictional limit, which is currently $10,000 for civil actions involving money, replevin, attachments, and garnishments. This limit does not apply to personal injury or tort claims, which have no monetary limit in small claims court. If the debt exceeds the small claims jurisdictional limit, the lawsuit would need to be filed in a higher court, such as the Circuit Court. It's important for debtors and creditors to be aware of these limits and the appropriate court for filing a debt collection lawsuit. Creditors should also be mindful of the statute of limitations for debt collection in Wisconsin, which varies depending on the type of debt but generally ranges from 6 years for contracts to 10 years for judgments.