Here is what I would do: Immediately close your Paypal and the bank account linked to it. Take your money to a different bank. Do not accept the return if it comes return it immediately. If you let that money out of your account you will never see it again. The legal process is nice but lets face it you will never see your money again you can win a lawsuit but collecting it is another matter entirely. When I first became an attorney I practiced collection law and saw the great lengths people go to avoid paying judgments and if you have to bring in a debt collector that take a 1/3 of what they collect usually. Then as someone suggested have her arrested for mail fraud.