If you default on a private money loan, the lender may take legal action against you to recover the money they lent to you. The specific actions the lender can take will depend on the terms of your loan agreement and the laws in your state.
Typically, the lender may first attempt to contact you to work out a repayment plan or negotiate a settlement. If these attempts fail, the lender may report your default to credit bureaus, which can negatively impact your credit score and make it more difficult for you to obtain credit in the future.
The lender may also take legal action against you to collect the debt. This could include filing a lawsuit against you in court, obtaining a judgment against you, and using legal remedies such as wage garnishment, bank account levies, or property liens to collect the debt.
In some cases, the lender may be willing to negotiate a settlement or a payment plan to avoid taking legal action. However, if you are unable to repay the loan and the lender takes legal action against you, it is important to seek legal advice to understand your rights and options.