Legal Question in Civil Litigation in Pennsylvania

He lent you money under an oral contract which is fully enforcible in court. If he wanted to, he could sue you and would probably end up with a judgment against you for the amount that you owe. Once he obtains a judgment, he can, if he wishes, cause the court to execute against your personal property such as your furniture, computer, TV, jewelry, and that sort of thing. If he were to do that, the sheriff would come to your home, take an inventory of your personal property, and put it up for sheriff's sale. There are some exemptions available to you, and if he does sue you, you should get a lawyer. Ultimately, you could discharge or get rid of the judgment by declaring bankruptcy, but this would be costly (lawyers fees and filing fees) and would ruin yuor credit for at least 10 years.

So long as you keep paying him the monthly checks, you should be alright. A lot depends on the amount of money you still owe him. For example, if it is less than 10,000, he can go himself to small claims court (municipal court in philadelphia) without a lawyer and get a hearing in about 60 days. If its more than that, he will probably need a lawyer, and he won't get a hearing for at least 9 months, if not longer.

Under any circumstances, I would keep paying him the monthly payments, and if he sues you go consult with an attorney as soon as possible. The fact that you continue to pay him the monthly payments seems to be a part of the oral contract, and as long as you keep paying, you will be OK.