Legal Question in Consumer Law in Pennsylvania

You can be sued for non-payment of the debt (assuming this is not a payday loan - different rules apply if it is). If the creditor recovers a judgment, the creditor can try to collect on the judgment. While there is no wage garnishment in PA, there is no exemption for motor vehicles, land, personal property or bank accounts. So your money and assets may be at risk depending on how titled.

If you only recently defaulted, I would use this time wisely to start building a war chest of funds. When you have approximately 50% of the debt saved up, you can try to settle the debt if you have not been sued.

How much is owed? Is this your only debt? If you have a lot of other dischargeable debts (over $10,000), you might want to consider filing bankruptcy if you can file a chapter 7. If you have to file a chapter 13, that would mean that you make too much income or have too many assets or are behind on your house which brings up other issues. There are other alternatives to bankruptcy but whether these would be right in your case depends on your circumstances - your sources of income and your assets.

I suggest that you get a consult with a bankruptcy or consumer debt attorney to find out what you have. I charge reasonable rate for phone consultations and purely email consults (no document review) are free. Please contact me at [email protected] if interested.