Legal Question in Credit and Debt Law in California

My sister in law owes me money and refuses to pay. Can I take her to small claims court?

My sister in law was going through a family crisis in which she lost her financial stability and was on the verge of being evicted. My wife convinced me to loan her enough for her to pay rent, $990, under the circumstance that it be repaid within 30 days.

After 30 days she asked for an extension as money was still an issue so we extended her repayment an additional 14 days. After that we received a check for $90 less than the amount she owed. She said it was all she could send. The check bounced and We were charged a check bouncing fee of $30. We then demanded she send a money order in a tracked envelope. When the envelope arrived, as expected, nothing inside. She began to suggest maybe it had been stolen but there were no signs of tampering so we told her we have had enough of her stories.

She then blocked my wife and myself from social media and refused to return our calls. It wasn't until a couple of months later that my wife wanted to visit her children to celebrate the birthdays that my wife was back in contact with her sister. Upon this visit, we met her new boyfriend. She had recently lost her husband as he was arrested for sexually assaulting one of her children and thus leaving her financially crippled. We were told they would be paying us the money within the next month.

The next month we began to hear stories of waiting for their tax returns that then became under investigation. My wife and I were tired of the stories and began making daily calls and messaging as it has been more than enough time to have repaid us at this point. My sister in law has yet again refused to return calls.

What actions can be taken to collect the debt owed? I have records of the money transferred into her account along with the bounced check fee. Is it possible as I live in CA and she lives in AZ? Please help with any information or steps needed in order for me to get what is owed.


Asked on 6/07/16, 6:09 pm

1 Answer from Attorneys

You theoretically could sue her in CA since the loan money was sent from here and to be repaid here, but then you'd have to take the CA judgement to the AZ courts and figure out how to have it entered as a sister state judgment. For all that hassle it would be best to just file a small claims case in AZ directly.

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Answered on 6/07/16, 6:31 pm


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