Legal Question in Civil Litigation in Pennsylvania

You file suit in the county/state where your sister-in-law and brother reside. If it is different states, I supposed you can sue each in small claims for $1900.

Whether you will recover anything once you get a judgment is questionable. PA has no wage garnishment, but NY does. However, I cannot advise on NY law so you may want to consult a NY attorney about that. You will have to testify at any hearing and you will have to prove that this was a loan and not a gift. Do you have written proof? You do have some part repayment, but unless you have a written promissory note, it will be difficult. People lie every day in court and its her word against yours. If she is smart, she will say it was a gift.

Have you made a written demand on her for the cash? If not, I would advise you to do that now. Ask her to respond to you. Offer to settle in a lump sum for less than the $1900, or, if she does not have it, then ask her to make arrangements to pay in installments but see if she will sign a written promissory note and get her to pay the installments plus a reasonable rate of interest. You are not a bank and she does not get interest free loans. Tell her in the letter that if you do not hear from her you will pursue further legal action and give her a definite time period of 15-30 days. People play games with certified mail - you might be better off with UPS/FedEx and get the tracking info to prove that it was delivered to her.

If she does not respond then go the small claims route but you must sue her where she resides. If you want to sue in PA, that is fine, but you will have to do that in the court of common pleas assuming PA has jurisdiction over her (was the loan made in PA? Does she still live in the state?).