I loaned my sister $500 last October and made a verbal agreement with her that the money would be paid back when she received her income tax check. That time has come and gone , she spent all of her check and now says that she cannot pay me back. I think that her first priority was to pay me back. How should I proceed? Do I have a claim?

If you want a family enemy for life, take her to court. Bet she has never been real good with money but you gavce her $500 anyway. Just hang in there and keep telling her that now you are short and need the money for your bills. Make a payment deal, anything short of court.

OK, You must have realised she may not pay you?? And you did this verbally of course not in writing,

You can sue her in small claims court, and most likely win but if you win, if she does not have the money what are you going to do? Garnish her paycheck?

See if she will pay you 10 dollars a week or something till you are paid off.