I am a lawyer in CT and practice in this area of the law.  A car company that gives you a loan and you fail to pay is permitted to file a lawsuit to collect the difference between the fair market value of the car (i.e. the price it sold the car for) and the loan that is due, plus intetest.  if the car company did in fact sel the car for less than what you owed on the car, it may seek the balance.  i suggest that you try to work out a settlement with the car dealership to avoid a judgment entering, as that will permit the car company to garnish your wages or levy on your bank account.