I know she's your dog, but IMHO, any dog that shows aggression or makes any attempt to bite should be euthed. Especially since you said she was out of her yard going down the street when she went after the neighbor child. That's not even her turf. What if she did get a hold of that child and bit him? Despte the possibility of being sued, it would be awful if you had to look at a scarred child's face and know your dog did it. She sounds like a liability, especially if she is getting loose. There are so many deserving dogs just waiting for a good home at your local shelter that do not bite. I'm sorry you are in this position....good luck with whatever choice you make for her.