Michigan Residential Builders License Practice Test

What is the maximum judgment amount in the small claims division of the district court?

1. $5,000

2. $4,000

3. $7,500

4. $6,000

The correct answer is: $6,000

In Michigan, the small claims division of the district court has a specific limit on the amount of money that can be awarded in a judgment. As of the latest regulations, the maximum judgment amount one can seek in small claims court is indeed $6,000. Small claims courts are designed to provide a more informal, faster, and less expensive means of resolving disputes involving relatively small amounts of money. The limit was established to ensure that the system remains accessible for minor disputes without overburdening the judicial process with larger, more complex cases. Therefore, understanding and adhering to the $6,000 limit is critical for anyone considering filing a claim in this court. The other amounts mentioned, such as $5,000, $4,000, and $7,500, do not reflect the current legal limits for small claims in Michigan, and filing for an amount exceeding $6,000 would require going through a different court process, often with more formal legal representations and procedures.