Legal Question in Credit and Debt Law in Georgia

Do you have a written agreement evidencing the loan? You say you have one for the work but that may be enough. Have you sent her a demand letter? I would send her a letter (send via UPS or FedEx with signagture confirmation as people play games and refuse certified mail). In the letter give her 15 days from the date of receipt of the letter. Recite your agreement, that she is in default and offer to resolve provided that she pays you in a lump sum via cash, certified check or money order (no personal checks because she can stop payment on those or give you a bad check). Tell her if she does not pay or contact you to make other arrangements that you will have no choice but to pursue further legal action.

If you do not hear from her by day 16 after receipt (you can track if you send UPS/FedEx and will know when she got the letter) , then go to the magistrate's office and file a complaint for money owed. Here is the link to GA: https://georgiamagistratecouncil.com/

Sue her for the amount of the loan and the damage to your furniture. If she does not answer in 45 days a default judgment will be issued. If she admits the debt, judgment will also be entered. Once final, you can seek to execute on the judgment by levying her bank account, garnishing her wages or having the sheriff seize any assets she may own outright (nothing liened). If she is out of state, then you will have to speak to a collection attorney in the state where she resides. Any small claims action has to be brought in the county/state where she lives.

Don't waste your time, more money and court resources for something that is a "principle." A better word might be "lesson." Don't loan money to friends or relatives. Give it to them if they are really in need and you can afford it. It looks like you already knew the person had a history of not paying debts, so you should have known the money was gone when you handed it over. You certainly can sue in small claims, pay $75 more money, a few hours time, then more hours trying to chase down a few dollars here and there...or move on to more productive things.