[TX] How do I prepare a small-claims case to recover a personal loan?

Lexi, Chatbot

I understand that you're in a challenging situation with your intent to sue. Have you already filed the lawsuit, or are you still in the preparation phase?

Lexi, Chatbot

What specific evidence or documentation do you currently have to support your claim for getting your money back?

Lexi, Chatbot

Is there anything else the lawyer should know before I connect you? Rest assured they’ll be able to help with your money recovery.

Jon

Hello, and thank you for reaching out to AskaLawyer! I’m Jon, a licensed attorney with over 13 years of experience, here to help. Thanks for sharing the details you have so far. It sounds like you're on the right track with your preparations. Could you let me know where you're located? This will help me understand the legal jurisdiction that applies to your case.

Jon

Thanks for sharing your location. Since you're in Dallas and the other party is in Houston, it's good to know both areas are within Texas, which simplifies jurisdiction issues.

Could you tell me a bit more about the nature of the loan? For example, was there a written agreement or contract involved?

Jon

Got it, thanks for clarifying that. Having a written agreement, even in text form, can be helpful.

Could you let me know the total amount of money involved in this loan? This will help in assessing the situation better.

Jon

Got it! In Texas, claims like yours are handled in the Justice of the Peace Court (Small Claims) per Texas Government Code § 27.031(a)(1). This court can handle cases up to $20,000, not including statutory interest or court costs. Since your claim is $3,300 plus interest, it falls well within this limit. Because the defendant lives in the Houston area, you will generally file the lawsuit in the Justice of the Peace precinct where they live, or where the contract was supposed to be carried out—using their residence is usually the simplest.

Your agreement is in the form of text messages. Under the Texas Uniform Electronic Transactions Act (UETA), contracts made electronically—like through text messages—are legally valid and enforceable. The most important thing is proving that both parties agreed to the loan and its terms. Keeping the full, detailed history of these messages will be key evidence for the court.

You didn’t specify an interest rate in your agreement. Under Texas law, the default legal interest rate is 6% per year (Texas Finance Code § 302.002). Interest begins accruing 30 days after the debt was due. To calculate it, you take 6% of the $3,300 principal for one year, divide by 365 to get the daily rate, and then multiply by the number of days past due starting from day 31. This will give the court a clear statutory interest amount if your agreement doesn’t specify one.

To be ready to file, gather and organize all your evidence. Print the text message thread that shows the loan amount, repayment agreement, and due date, arranging the messages in chronological order.

Collect proof that the loan was funded, like bank statements showing the money leaving your account and ideally reaching theirs. Include the text messages showing the defendant acknowledged the debt but did not pay. Keep a copy of their ID or passport, as this proves their identity.

Even though you already sent a letter of intent to sue, you should send a formal demand letter before filing. Send it via Certified Mail with Return Receipt Requested or another trackable method. The letter should clearly state the total amount owed (principal plus statutory interest), reference the dates of the loan and missed payments, and give a final, reasonable deadline for payment (for example, 7–10 days). Keep the return receipt or proof of delivery to show the court.

Finally, make sure you file in the correct Justice of the Peace precinct in Houston and have the defendant properly served. When you file your Petition (the initial court paperwork), list your damages clearly: the $3,300 principal, accrued statutory interest, and court costs.

In short, your preparation should focus on organizing all evidence, calculating the statutory interest, sending a final demand, and then filing the Petition in the right court. With everything documented and arranged, your case will be ready to move forward efficiently.

Jon

I just wanted to check in and see if you have any additional questions about the legal aspects of this issue. I’m here to help if you need clarification or further guidance. I hope the information I provided was helpful and addressed your question. If there's anything else you need, please don’t hesitate to reach out.