Someone Owes Me Money. What Can I Do?

Explore practical steps you can take when someone has not repaid money they owe you.

You lend a friend money and they promise to repay you by the end of the month. The date passes, and you receive another promise but no payment. Or perhaps you sell someone an item, hand it over and never receive the agreed price. What can you do to recover the money?

The steps available to you depend on why the money is owed, what you agreed to and whether the debt is legally enforceable. A written agreement can make a claim easier to prove, but an agreement is not necessarily unenforceable simply because it was made verbally.

Start by checking what was agreed

Before demanding payment, establish the basic facts:

• Who owes you money? Make sure you have the correct name and contact details of the person or business.

• Why is the money owed? Was it a loan, payment for an item you sold or payment for work you completed?

• How much is outstanding? Account for any amounts already paid.

• When was payment due? Check the agreed date or any terms about when repayment could be requested.

Gather the records that support your claim. These may include an agreement, bank statements, proof of payment, invoices and messages in which the other person confirms the arrangement. If the debt is disputed, those records may become important.

First, ask the person to pay

You can begin by contacting the person and explaining how much is outstanding and why you believe it is due. Ask for payment by a clear date and keep a record of the conversation.

If they cannot pay immediately, you may choose to discuss a repayment arrangement. Record any arrangement in writing, including the amounts and payment dates. Do not agree to new terms unless you understand how they affect your existing agreement.

If the person disputes owing you money, ask them to explain why. A disagreement about whether a debt exists may need to be resolved before you can recover it.

What if they still do not pay?

If informal requests have not worked, a letter of demand is a more formal way to request payment. It should identify the person you are claiming from, explain the basis of the debt, state the amount outstanding and specify when payment is required.

If you intend to use the Small Claims Court, there is a particular procedure to follow. The Department of Justice explains that you must deliver a letter of demand by hand or registered post, retain proof of delivery and allow the person at least 14 days after receiving it to satisfy the claim before proceeding with a summons. The Small Claims Court clerk can assist you with the required documents.

Keep the letter factual. Avoid insults, threats or claims about consequences that you are not entitled to impose.

Can you take the matter to the Small Claims Court?

The Small Claims Court provides a more accessible process for certain civil claims, including repayment of money lent. As at September 2026, its monetary limit is R30,000, following an increase that took effect on 1 August 2026.

An individual can bring a qualifying claim without being represented by an attorney or advocate at the hearing. Companies and other juristic persons cannot institute claims in this court, although qualifying claims can be brought against them. The court also cannot hear every kind of dispute, so check that your particular claim falls within its jurisdiction.

If the person has not paid after the required period following delivery of your letter of demand, approach the clerk of the Small Claims Court at a Magistrate’s Court. Take:

1. Your letter of demand and proof that it was delivered.

2. Your agreement and other documents supporting the amount claimed.

3. The person’s name, address and available contact details.

The clerk will assist with the process for issuing a summons and obtaining a hearing date. At the hearing, you will need to explain your claim and present the supporting evidence.

What if you are owed more than R30,000? The Small Claims Court cannot award an amount above its monetary limit. You may need to consider an ordinary civil claim in another court. The Department of Justice also explains that a person may choose to pursue a lesser amount in the Small Claims Court, but you should understand the consequences of giving up any balance before making that choice.

For an overview of the matters the court can hear and what to expect when bringing a claim, read our guide to the Small Claims Courts.

What if you win but the person still does not pay?

A court judgment confirms what the court has ordered, but it does not guarantee immediate payment. If the person does not comply, further steps may be necessary to enforce the judgment. The Small Claims Court clerk can explain the relevant procedure, including when the matter must be dealt with through the Magistrates’ Court.

Keep a copy of the judgment and records of any payments you receive.

Is there a time limit for claiming unpaid money?

Yes. Do not leave an unpaid debt unresolved indefinitely. Under the Prescription Act 68 of 1969, many ordinary debts prescribe after three years, although different periods and rules may apply depending on the debt and the circumstances. The starting date and whether prescription has been delayed or interrupted can also matter.

Importantly, sending a letter of demand does not, by itself, necessarily interrupt prescription. The Act provides for interruption in circumstances including an acknowledgement of liability by the debtor or service of legal process claiming payment, subject to its requirements. If a debt has been outstanding for a long time, seek legal advice promptly rather than assuming that another reminder will preserve your claim.

Remember: 

Confirm what is owed. Keep your evidence. Act before important deadlines pass.

Official Resources and Further Reading

• Small Claims Courts Act 61 of 1984: Read the legislation governing Small Claims Courts and their procedures.

• Department of Justice: Small Claims Courts: Follow the official step-by-step guide, including how to deliver a letter of demand and approach the clerk of the court.

• Department of Justice: Small Claims Court Forms: Access the official forms, including Form J993: Letter of Demand.

• Prescription Act 68 of 1969: Read the legislation governing time limits for enforcing debts.

• Legal Aid South Africa: Instituting Action in the Small Claims Court . Read practical guidance on preparing a claim and the documents you may need. Note: Check the Department of Justice’s current page for the updated R30,000 limit.

Disclaimer: This article provides general information about South African law and does not constitute legal advice. The information may not apply to your particular circumstances. If you need advice about your situation, consult a qualified legal practitioner or an appropriate legal advice service.