(1) The small claims court has jurisdiction over all actions for the recovery of money or specific personal property when the amount claimed does not exceed $7,000, exclusive of costs, and the defendant can be served within the county where the action is commenced.
(2) A district court judge may require any action filed in district court to be removed to the small claims court if the amount in controversy does not exceed $7,000. The small claims court shall hear any action so removed from the district court.