Personal loan to a friend or family member — suing in California small claims court
Find the message where repayment was discussed. These cases turn almost entirely on whether you can show it was a loan rather than a gift, and a single text saying "I'll pay you back next month" usually settles that question.
General information about California procedure. We are not a law firm and cannot advise on your case.
Your deadline to file
2 years — Oral agreement, which is what most personal loans are (Code Civ. Proc. § 339).
A signed promissory note or IOU gives you 4 years (Code Civ. Proc. § 337). If repayment was due in installments, the clock may run separately on each missed installment.
What this kind of case is worth
Unpaid personal loan claims in California small claims court typically run from $200 to $12,500. An individual may claim anything under $12,500; an entity is capped at $6,250.
| Amount you are claiming | Filing fee |
|---|---|
| up to $1,500 | $30 |
| over $1,500 up to $5,000 | $50 |
| over $5,000 up to $12,500 | $75 |
| More than 12 small claims filed in the past 12 months | $100 |
How to start
Before you file, you have to have asked the defendant to pay — the SC-100 asks you to confirm it. A written demand with a deadline does three useful things at once: it satisfies that requirement, it creates a dated record the judge can see, and quite often it ends the dispute without a filing fee.
If the letter does not work, file SC-100 with the small claims division of the Superior Court in the right county — generally where the defendant lives or does business, or where the deal was made or performed.
What to bring to the hearing
A small claims judge has minutes, not hours. Walk in with these, each one labelled, plus a copy for the judge and a copy for the other side.
- Any note, IOU or written acknowledgement
- Proof the money moved — bank transfer, Venmo or Zelle record, canceled check
- Messages discussing the loan and the repayment plan
- A record of any partial repayments
- Anything showing it was a loan and not a gift — this is the central fight
What they will argue back
Expect one of these. Knowing which is coming is most of the preparation.
- They say it was a gift — the most common defense, and why contemporaneous messages matter
- They say it was already repaid in cash
- They say no repayment date was ever agreed
Serving the papers
Filing is not the hard part. Service of process is where self-represented cases most often come apart. The defendant has to be formally notified, you cannot do it yourself, and you must file proof that it happened on form SC-104 before the hearing. Use the sheriff, a registered process server, or any adult who is not a party to the case.
The hearing
You cannot bring a lawyer to argue for you at a California small claims hearing. Neither can the other side. That is the whole point of the forum: the rules are simplified so two people can explain a disagreement to a judge without needing representation. You may get advice from an attorney before and after, and lawyers are permitted on appeal — but on the day, it is you.
Common questions
How do I prove it was a loan and not a gift?
With words from the time, not words from now. A text or email referring to paying it back, a note, a payment labelled "loan" in a transfer memo, or a history of partial repayments all establish it. A bank transfer on its own is ambiguous, which is exactly what the other side will argue.
What if we never set a repayment date?
The law treats a loan with no stated due date as repayable on demand, so the limitation clock generally starts when you demand repayment and are refused. Make the demand in writing and keep proof of sending, because that written demand is what fixes the date.
Start with a demand letter
Most California small claims cases settle before anyone sees a courtroom. The letter is free to write, and you can have us print and certified-mail it for $29.
No account needed to start. We are not a law firm and cannot give legal advice.