I have lent money to a "friend" , two years later its not paid back and she can't pay. what can I do?

Even if you won this lawsuit (verbal contracts and post dated ones aren't always binding) if she has no way to pay you, you still won't get your money. This is why it's a bad idea to lend money to friends or family. A better way to think of it is "giving money" to them. If she's being evicted... has no car.. chances are she has no money to pay you either. Regardless of the reasons, even suing probably won't get your money back.