Legal Question in Credit and Debt Law in Pennsylvania

Do you have the agreement in writing? I'd put your disappointment with her in writing, and demand re-payment, and tell her to respond within 1 week. Then, if no response, send another letter, tellin her if she does not respond and tell you how she is going to re-pay you, that you will have no choice but to sue her. If you do not have everythying in writing, put it in writing now, it may help later, and push to get something back from the woman with her signature, acknowledging the debt!

Don't beat yourself up. What is done, is done. For the future, never ever do something like this. If she cannot get her own loan, it is a red flag that she has financial problems. Same if she needs a co-signer.

I would need to see the loan documents to be sure, but if you took out the loan, then you were the primary borrower, not her. In such case, the delinquency in late payments is on your credit, not hers (unless her name is also on the loan). And even if her name is on the papers, there is probably a clause making this "joint and several" liability for the debt. In English, what this means is that in the event of a default, the bank can go after you or her or both. But if they decide to come after you only, then your recourse is to pay and then go after her or drag her into the lawsuit.

What Attorney Beglin recommends is good advice. You do want to create a paper trail to establish that this was a loan, not a gift, and to get her to acknowledge the debt. You also can play on any sympathy to see if your friendship will induce her to pay. But she is not paying for a reason. Did her business fail? Did she lose her job? Have a health issue or divorce? Have a drug habit? The answer to this question may tell you why she is not paying.

Sure, you can sue her. But there is no wage garnishment in PA. You cannot automatically recover attorney fees from her unless you had something in writing stating this. Is it going to be worthwhile to spend more money on a debt that is not collectible? If it is under $8,000, you could try magistrate's court. If it is more than $8000, then you should get a lawyer and at least get a judgment as it will hopefully enable you to collect at some point. The judgment is good for five years and can be revived. However, it costs money to "execute" or collect on the judgment. The question you have to ask yourself is whether she owns property or valuable personal possessions, like a car, and whether there are enough assets to pay for the costs of collection and your judgment.

As between you and the lendor, you will have to work something out to pay. These are not mutually exclusive alternatives. You have to do both.