Please note that for legal reasons my answers are only intended to be general/educational information rather than specific legal advice. If you need specific legal advice, then you must consult with a local attorney in your jurisdiction.
Yes, if you are sued and the lender is awarded a judgment against you for the $3000 (plus interest and attorney’s fees), then it can garnish your wages, as well as garnish your bank accounts. If you’re collecting Social Security payments, then those funds cannot be garnished, however.
If you were to file for bankruptcy, then you could potentially get the payday loan discharged such that you would no longer owe that money. However, bankruptcy is not something to do over a $3000 loan, in my opinion. If you have other debts that can be discharged as well, then it may be worthwhile.
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