Michigan · Unpaid personal loan

Unpaid personal loan in Michigan small claims

Friend or family owes you money? Recover it in small claims.

Lending money to a friend or family member without repayment can lead to a small claims case. You do not need a formal promissory note to sue, but having written evidence of the loan — even text messages or emails confirming the amount and a promise to repay — dramatically strengthens your case. The key elements are proving the loan was made, the amount, and that repayment was due.

In Michigan, small-claims cases are heard in the Small Claims Division of the District Court and you can sue for up to $7,000 (periodically adjusted for inflation).

Good to know: Michigan small-claims cases are heard in the Small Claims Division of the District Court. An attorney cannot represent a party in the small claims division; if the defendant wants an attorney, the defendant can demand that the case be moved to the general civil division. There is no traditional written “answer” in small claims; the case proceeds on an appearance date. The maximum recoverable amount is currently $7,000 (MCL 600.8401) and is periodically adjusted for inflation.

Unpaid personal loan in Michigan: local specifics

Michigan separates limitations periods for written and oral contracts, so whether you have a written loan agreement affects how long you have to file. Attorneys may not represent parties in the Small Claims Division at the hearing.

Unpaid personal loan: steps that matter

1. Gather all evidence of the loan: bank transfers, cash-withdrawal records, texts, emails, or any written note agreeing to repay.
2. Calculate the amount owed including any agreed interest, and confirm when repayment was supposed to occur.
3. Send a written demand for repayment with a clear deadline and keep proof you sent it.
4. Confirm you are within the statute of limitations below before filing — the clock may have started from the repayment due date.
5. File in the court where the defendant lives or where the loan was agreed to.

Filing your Affidavit and Claim (Form DC 84) in Michigan

1. Fill out the Affidavit and Claim (Form DC 84). Complete items 1 through 12 of Form DC 84 (Affidavit and Claim, Small Claims) online or on a paper copy from the court, identifying the plaintiff, defendant, date and amount of the dispute, and the reason for the claim. Do not sign until you are in front of a notary or the clerk of the court.
2. Sign the affidavit under oath and make copies. The form must be signed under oath in front of a notary public or the clerk of the court, after showing photo identification. Make all necessary copies (print all four copies if filing in person).
3. File with the clerk and pay the filing fee. File the affidavit and claim with the clerk of the proper district court, in person or by mail, and pay the filing fee at the same time (see MCL 600.8415 for the proper venue). If you cannot afford the fee, ask the clerk for a Fee Waiver Request (Form MC 20).
4. Arrange for service on the defendant. Pay for and arrange service. The clerk keeps the original for the court file and arranges to serve one copy on each defendant by personal delivery or by certified mail, return receipt requested, deliverable to the addressee only; the clerk completes the notice of hearing and assigns a case number.
5. Appear at the scheduled hearing. Proof of service is filed with the court. Bring your copy of the affidavit and claim, your evidence, and your witnesses to the hearing on the scheduled appearance date and present your case to the district court judge or attorney magistrate. If you are not present when the case is called, it will probably be dismissed.

Filing fees: Filing fees vary by claim amount; confirm the current amount with the court. A fee waiver (Form MC 20) is available.

Deadline that applies to your unpaid personal loan

A personal loan is a contract or debt claim — you lent money on a promise to repay. If you have a written loan agreement, the written-contract statute of limitations typically applies. If the loan was only a verbal agreement, the oral-contract or debt period usually governs. The limitations clock generally starts from the date repayment was due or the last payment made.

Written contract: 6 years (MCL § 600.5807)

Answering a lawsuit: No written answer is required in the small claims division. Instead, the defendant must appear at the hearing on the appearance date set by the court; the defendant must be served at least 7 days before the appearance date for the court to have jurisdiction (unless the defendant appears and does not request a continuance). (A 14-day written-answer deadline applies only if the case is removed out of the small claims division to the general civil division.)

Serving the defendant: The clerk arranges service of one copy on each defendant either by personal delivery (personal service) or by certified mail, return receipt requested and deliverable to the addressee only. The defendant must be served at least 7 days before the appearance date.

Appeals: By choosing the small claims division the parties generally waive the right of appeal. However, if the case is heard by a district court magistrate, either party may take an appeal de novo as of right to the small claims division of the district court, which must be taken within 7 days after entry of the magistrate's decision. There is no further appeal from the district court judge's judgment.

All Michigan small-claims deadlines

The table below lists the filing deadlines Small Claims Division of the District Court applies by claim category. Confirm the exact rule that applies to your unpaid personal loan claim with your court before relying on any figure.

Michigan small-claims forms for your unpaid personal loan case

These forms are published by the Small Claims Division of the District Court. CaseBySelf can pre-fill them automatically from your case details.

• Affidavit and Claim, Small Claims (DC 84): Starts a Michigan small-claims case.
• How to Get a Money Judgment in Small Claims Court (DC 84 instructions): Instructions for using Michigan Form DC 84 to start a small-claims case.

This page is general information, not legal advice, and CaseBySelf is not a law firm. Rules, fees, and deadlines change and vary by court: verify with the specific court where you file. Source: Michigan Courts: INST DC 84, How to Get a Money Judgment in Small Claims Court / Instructions for Affidavit and Claim (SCAO-approved, Rev. 1/24). Last reviewed 2026-06-23.