Legal Question in Civil Litigation in Wisconsin

Re: Small claims court

If your loan is evidenced by a written document signed by your niece, it difficult to see how she could convince a court that she does not owe the money. It is no different than a note owed to a bank.

I also assume that she cannot prove that she paid the loan or that you somehow forgave the loan. This would take more than just her word for it. She would need written evidence of payment or forgiveness of the loan or the tesimony of unimpeachable impartial witnesses.

If there is a payment plan and if you do not have an accelaration clause (meaning that the whole amount becomes due if your niece misses a payment) you may technically only be able to sue for the missed payments and if she catches up the payment she may be able to resume the installments. If you sued for the whole amount and if she understood this she could raise the lack of an acceleration clause as a defense so you would only get judgment for the missed payments.