no, they cannot take you to court. you are still responsible for the loan plus late interest plus default charges and nsf in the bank but actually its just a empty threat. What really happens is it goes to a collection department, who buys the loan from the loan company and they deal with it. it might hit your credit hard but at the same time it might not it depends on the company. I work in the industry and trust me so many people don't pay us its sickening but we can't do nothing about it!!!!