You can sue someone who owes you money by filing a civil lawsuit — small claims court for smaller debts, general civil court for larger ones. Suing someone who owes you money starts with a written demand, moves through filing a complaint and serving the defendant, and ends with collecting on any judgment the court enters. Two questions decide whether it is worth starting: is the debt still within the time limit to sue, and does the debtor have income or assets you could actually reach.
Is the Debt Still Within the Time Limit
Every state sets a deadline for filing a lawsuit over an unpaid debt. Once that deadline passes, you lose the right to sue, even if the debt is legitimate and well documented. These statutes of limitations typically run three to six years for oral agreements and four to ten years for written contracts, depending on the state. The clock usually starts on the date the payment was first missed.
Certain actions by the debtor can restart the clock. In many states, a partial payment, a written acknowledgment of the debt, or a new promise to pay resets the limitations period back to zero. Before you contact a debtor about an older debt, think about whether prompting one of those actions would help you, or whether the debt is simply too old to pursue at all.
Can You Actually Collect
Before filing anything, be honest about whether a win would translate into money. A debtor is “judgment-proof” when they have no income or assets the law allows you to reach. Federal law protects Social Security benefits from garnishment or levy by private creditors.1Office of the Law Revision Counsel. 42 USC 407 – Assignment of Benefits Most states also protect disability payments, veterans’ benefits, unemployment insurance, public assistance, and a basic amount of personal property. If the debtor’s only income is from protected sources and they own no non-exempt assets, a judgment may be uncollectible for now.
That does not necessarily mean giving up. In most states, judgments remain enforceable for 5 to 20 years, and many states allow renewal before expiration. A debtor who is judgment-proof today may get a job, buy property, or come into money later. If the amount at stake justifies the filing costs, getting the judgment now and enforcing it later is a reasonable play.
What You Have to Prove
Most unpaid-money lawsuits are breach-of-contract claims. To win, you have to show four things: a valid agreement existed, you did what you promised, the debtor failed to pay as agreed, and you suffered a financial loss. Written contracts make this clean because the terms sit on the page. Oral agreements are enforceable too, but they are harder because the terms depend on each side’s memory.
Some agreements have to be in writing to be enforceable at all. Under the statute of frauds, contracts that cannot be completed within one year and promises to pay someone else’s debt generally need a written document signed by the person you are suing. For the sale of goods, the Uniform Commercial Code requires a signed writing when the price is $500 or more.2Cornell Law School. Uniform Commercial Code 2-201 – Formal Requirements; Statute of Frauds If your situation falls into one of those categories and you have no written proof, your case is in trouble before it starts.
Send a Demand Letter First
Before court, send the debtor a formal written demand for payment. A demand letter sometimes resolves the dispute on its own, and it creates a record showing the court you tried to collect before suing. Some contracts and some state laws require a demand letter before you can file.
Your letter should state the amount owed with principal, interest, and late fees broken out separately; reference the contract, invoice, or agreement that created the debt; give the debtor a clear deadline (typically 10 to 30 days); say plainly that you will file suit if the deadline passes; and attach copies of any supporting documents. Send it by certified mail with a return receipt so you can prove delivery, and keep a copy for your file.
Gather Your Evidence
Documentation is the backbone of the case. Confirm the debtor’s full legal name and current physical address; you need both to file and to serve. Then pull together everything that proves the debt exists and remains unpaid:
- Signed contracts, promissory notes, or loan agreements.
- Invoices and receipts showing what you provided and what was owed.
- Emails, texts, or letters where the debtor acknowledges the debt or discusses payment.
- Bank statements or transaction logs showing partial payments.
- Your demand letter and the certified mail receipt.
Calculate the exact amount owed, separating the original debt from interest and fees. If your agreement specifies an interest rate, use that rate; if not, your state’s statutory prejudgment interest rate applies. Courts expect precise numbers. A vague “approximately $3,000” weakens your case.
Which Court to File In
The amount at stake decides the court. Small claims courts handle lower-value disputes through a simplified process: you typically do not need a lawyer, evidence rules are relaxed, and cases move faster. Monetary limits vary widely, from about $2,500 on the low end to $25,000 on the high end. If your debt exceeds your state’s small claims limit, you file in general civil court, where procedures are more formal and hiring a lawyer becomes more practical.
Venue matters too. Courts generally require you to sue in the county where the debtor lives or does business, or where the contract was signed or performed. Filing in the wrong county can get your case dismissed or transferred. Check your local court’s website for the specific rules.
Filing the Complaint
To start the case, get a complaint form (sometimes called a “statement of claim” in small claims court) from the court clerk or the court’s website. Enter the debtor’s name and address, describe the basis for the debt, and state the exact amount you are claiming. Most courts want principal separated from interest and fees so the judge can evaluate each piece.
Submit the form to the clerk in person or through electronic filing, and pay the filing fee. Fees vary, but expect roughly $30 to $75 for small claims and $150 to $400 or more for general civil cases. If you cannot afford the fee, ask the clerk about a fee waiver application. Courts routinely waive fees for people who meet income eligibility guidelines.3United States Courts. Fee Waiver Application Forms
Serving the Defendant
Once the court accepts your filing, you have to formally deliver copies of the complaint and a court summons to the defendant. This step is called service of process, and you cannot hand-deliver the papers yourself. You typically hire a professional process server or use the local sheriff’s office; either will deliver the documents and file a proof of service with the court. Service fees generally run $20 to $100.
If the defendant is avoiding service or cannot be located, you can ask the court for permission to use alternative methods: leaving the papers with another adult at the defendant’s home or workplace, service by mail, or in rare cases, publication in a local newspaper. Courts require you to show genuine efforts at personal service before approving an alternative.
What Happens After You File
If the Defendant Does Not Respond
After being served, the defendant has a set number of days — typically 20 to 30, depending on the court — to file a written response. If the defendant ignores the lawsuit, you can ask the court to enter a default judgment in your favor. A default gives you a win without a trial, but it is not automatic: you still have to show the court basic proof that the debt is valid and that the defendant was properly served, which may mean submitting documents or attending a short hearing.
Mediation and Settlement
Many courts encourage or require mediation before trial, especially in small claims cases. A neutral third party helps you and the debtor negotiate a resolution. If you reach an agreement, such as a payment plan or a reduced lump sum, the mediator can put it in writing so it becomes enforceable. Mediation is usually faster and cheaper than trial, and a debtor who agrees to a plan is more likely to follow through than one who loses at trial.
Trial
If mediation fails and the defendant disputes the debt, the case goes to trial. In small claims court, trials are informal: you present evidence and explain your side directly to the judge, usually without lawyers. General civil court follows more formal rules of evidence and procedure. Either way, you carry the burden of proving the debt. Bring organized copies of every piece of evidence and any witnesses who can speak to the agreement or the nonpayment.
Collecting on a Judgment
Winning gives you a court judgment, an official order stating the debtor owes you a specific amount. A judgment alone does not put money in your pocket. If the debtor does not pay voluntarily, you use the court’s enforcement tools.
Wage Garnishment
A wage garnishment orders the debtor’s employer to withhold a portion of each paycheck and send it to you. Federal law caps garnishment for ordinary debts at the lesser of 25 percent of the debtor’s disposable earnings for the week, or the amount by which those earnings exceed 30 times the federal minimum wage, whichever is smaller.4Office of the Law Revision Counsel. 15 USC 1673 – Restriction on Garnishment Some states set lower limits. Very low-income earners may have little or nothing available to garnish.
Bank Levy
A bank levy lets you seize funds directly from the debtor’s bank accounts. You get a court order directing the bank to freeze the account and turn over enough to satisfy the judgment. The bank holds the funds for a short waiting period, usually a few weeks, during which the debtor can claim that some or all of the money is exempt.
Property Lien
You can record your judgment as a lien against real estate the debtor owns. The lien attaches to the property and must be paid off before the debtor can sell or refinance. It does not give you immediate cash, but it secures your claim and puts pressure on the debtor to settle.
Debtor’s Examination
If you do not know what the debtor has, you can ask the court to order a debtor’s examination. The debtor must appear and answer questions under oath about finances, employment, bank accounts, and property. That information tells you which enforcement tool to use. A debtor who ignores the order to appear can face contempt sanctions, including fines or a warrant for arrest.
Interest and Costs Added to the Judgment
Once you win, interest typically starts accruing on the unpaid balance from the date the judgment is entered. In federal court, the post-judgment rate is based on the weekly average one-year Treasury yield published by the Federal Reserve.5United States Courts. Post Judgment Interest Rate State courts set their own rates. A debtor who delays payment ends up owing more over time.
Most courts also let the winning party recover certain litigation costs from the losing party, typically the filing fee, service fees, and other out-of-pocket court expenses. Attorney’s fees are generally not recoverable unless the original contract has an attorney’s fees clause or a specific statute authorizes them. Keep receipts for every expense while the case is pending, and ask the court to add them to your judgment.