What are the consequences of defaulting on a 403b loan?

Answer by  j3212 (22)

The consequences of defaulting on a 403b loan is that it will affect your taxes. It will be considered a taxable distribution. The amount of the loan will be taxed as income on your taxes for next year.

Answer by  Jonas (32)

Your credit rating will deteriorate. All your creditors will want to get some part of the money. You may want to contact the creditors to get a debt reorganisation. If you need protection from your creditors, you can file for chapter 11.