Can Advance Financial take legal action against me, garnishment, etc?

I took an online loan from Advance Financial 24/7 10/2019 for $1250. From October to March 2020 I paid them about $325 a month. In March I enrolled with Encompass Recovery Group, a debt settlement group for payday loans. They settled (late August, early September) with Advance Financial for $2000. In July Advance did a write off of the total balance of $2739. I have reached a point financially where I am having to decide between making my car payment and continuing to make the payments on this loan. I have attempted to negotiate a lower monthly payment, but was "cautioned" Advance Financial might take me to court.

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