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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.
You can file a claim for which you are seeking $15,000 or less. If your claim exceeds $15,000 principal, the Magistrate Court does not have jurisdiction (the legal authority) to hear your case, and it must be filed in another court; such as, Superior Court.
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.
For most people, it is not worth it. It is a lot more difficult than people think to present a case effectively in front of a Judge or a Jury, especially if you are not a practiced attorney that is familiar with the law (whether it is strictly enforced in court proceedings or not).
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