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Conclusion: Going to small claims court may be worth it for $500, but it will determine how you weigh your costs versus benefits. At a minimum, it is worth it to send a demand letter.
Even without a written contract, you can still sue someone for money by building a strong case with different types of evidence. Emails, text messages, and other written communications that mention the loan or agreement can support your claim.
Plaintiffs Claim and ORDER to Go to Small Claims Court (Small Claims) (SC-100) Start a Small Claims case in court.
Be clear and concise when presenting your case; dont go off on tangents, dont insult the other party, dont bring up information or events that arent directly related to the matter at hand. Rehearse presenting your case before you get into court. Listen to everything the judge says and answer clearly.
Defendants Claim and ORDER to Go to Small Claims Court (SC-120) Sue the person or business suing you in Small Claims court.
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People also ask

Writing a strong demand letter and threatening to file a lawsuit or go to small claims court can change that impression. Your demand letter should clearly explain why you believe that the other party should pay money to you or change their behavior.

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