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 Wyoming, lawsuits to collect debts are typically filed in state courts, and this includes small claims courts if the amount of the debt falls within the court's jurisdictional limits. Small claims courts in Wyoming handle cases involving claims of $6,000 or less, as of the knowledge cutoff in 2023. This limit is set to ensure that the court deals with minor financial disputes that do not require the more formal and complex procedures of higher courts. If the debt exceeds the jurisdictional limit of the small claims court, the lawsuit must be filed in a different court, such as the district court, which can handle larger claims. Creditors must file their lawsuits within the statute of limitations, which varies depending on the type of debt. It is important for debtors to respond to such lawsuits to avoid default judgments, which can lead to wage garnishment, bank levies, or other collection actions.