Hello and welcome to JustAnswer. Please note: This is general information for educational purposes only and is not legal advice. No specific course of action is proposed herein, and no attorney-client relationship or privilege is formed by speaking to an expert on this site. By continuing, you confirm that you understand and agree to these terms. I am sorry to hear about this situation. The Small Claims Court is an informal court where individuals can sue for money only, up to $3,000 in Town or Village Courts, and $5,000 in City Courts, without a lawyer. If someone in your situation sues in Town Court, then they can only sue for up to $3,000. You cannot sue for the whole $7,000. If you do sue for the $3,000, you may indeed forfeit the rest. OR, if you sue in Town Court for $3,000 but the loan is really for $7,000, your son can MOVE the case to a court of proper jurisdiction stating that the real controversy is $7,000 (causing more waiting and more litigation
). So if the sum really is $7,000, it belongs in either City or District Court
, not Town Court. Someone in your situation filed in the wrong court. Please note: If I tell you simply what you wish to hear, this would be unfair to you. I need to be honest with you and sometimes this means providing information that is not optimal. Negative ratings are reserved for experts who are rude or for erroneous information. Please rate me on the quality of my information; do not punish me for my honesty. I hope this helps and clarifies. Please use the SEND or REPLY button to keep chatting, or please RATE when finished. You may always ask follow ups at no charge after rating. Kindly rate my answer as one of TOP THREE FACES/STARS and then SUBMIT, as this is how experts get credit for our time. Rating my answer the bottom two faces/stars (or failing to submit the rating) does not give me credit and reflects poorly on me, even if my answer is correct. I work very hard to formulate an informative and honest answer for you; please reciprocate my good faith with a positive rating.