How to sue someone who owes you money.
Friend, family member, ex, or stranger. With or without a written agreement. Small claims is built for these cases. Most informal loans are recoverable: bank records, texts, witness testimony, and the borrower’s own statements all establish the agreement. Most cases settle once a demand letter arrives.
What kind of loan are you trying to recover?
Each guide covers what you can recover, what evidence to bring, and how to file in your state.
How small claims handles personal loan disputes.
Small claims is the standard venue for informal loans between people. Most state caps fall between $5,000 and $20,000. You do not need a written contract to win. Bank records, payment-app screenshots, and the borrower’s own messages all establish the loan.
Belongs in small claims
Doesn’t belong here
What can you recover?
The math judges use. A typical informal-loan case stacks the principal, pre-judgment interest, and filing fees.
The amount you transferred plus any costs you paid on the borrower’s behalf.
State legal rate (7-10% per year typical) running from agreed repayment date.
Filing fee, service-of-process cost, post-judgment interest until paid.
What evidence do you need to recover money you’re owed?
Personal-loan cases are won on the paper trail. Bank records, payment-app screenshots, and the borrower’s own messages overcome almost every defense. The judge wants to see the transfer, the agreement to repay, and proof you asked.
Bank or payment-app records
Statement, transfer screenshot, or canceled check showing the dollar amount and date you sent it.
Written IOU or promissory note
Even a handwritten note. If you have one, this is the strongest single piece of evidence in the case.
Texts and chat messages
Anything where the borrower says ‘pay back,’ ‘loan,’ ‘I owe you.’ Venmo memo lines count too. Screenshot the whole thread.
Demand letter and proof of delivery
Certified-mail receipt or email read-receipt. Shows you gave them a chance to pay before filing.
Witness statement
A friend, partner, or coworker who heard the agreement or saw the cash change hands. A short signed declaration helps.
Repayment schedule (if any)
If you had a plan, even informal, write it down with dates and amounts. Missed payments anchor your timeline.
State-specific rules.
Statute of limitations varies (2 to 6 years for oral, 4 to 10 for written). Pre-judgment interest rates differ. Some states require notice before suit. Pick yours for the exact rules.
See all 50 state guides →Common questions.
The questions lenders actually ask before filing. Don’t see yours? Email support.
Can I sue someone who owes me money?
Yes, when the amount fits your state’s cap (usually $5,000 to $20,000). Most informal loans are recoverable: friend loans via Venmo, family loans, oral agreements, IOUs, cash loans, even loans without a written contract under unjust enrichment theory.
Do I need a written contract to sue?
No. Verbal agreements are enforceable in most states. Bank records, texts, and witness testimony combine to prove the agreement existed. Even with no explicit agreement at all, two alternative legal theories can win the case: 'unjust enrichment' (they benefitted from your money without paying you back) or 'promissory estoppel' (they promised to repay and you relied on that).
How long do I have to sue?
Written contracts/IOUs: 4 to 6 years in most states (some give you up to 10). Verbal contracts: 2 to 4 years. The clock usually starts on the agreed repayment date — or, if there wasn't one, the first time you asked for the money back. Don't sit on it.
What if the borrower says it was a gift?
Bring the texts. The borrower's own words — 'pay back,' 'loan,' 'I owe you,' even a Venmo memo line that says 'loan' — beat the gift defense. People rarely send 'pay back' messages for actual gifts.
Can I charge interest?
Yes, if you agreed on a rate in advance. Even without an agreement, you can ask for the state's default rate (typically 7 to 10 percent per year). Note: every state caps how much interest you can charge — rates above that limit are illegal and can void the whole loan.
This is general legal information, not legal advice. CivilCase is not a law firm. Statutes of limitations, the Statute of Frauds, and pre-judgment interest rates vary by state. Verify deadlines and citations against your state’s official source before filing. Read our disclaimer.