being sued

I took out a loan from united cash I owe them 280 I have tried work something out with a payment plan they won't take anything under 50 about a month ago. Iam broke and I am trying to pay off my other loans which I am making progress. I got tired of dealing with them so I put them on hold. Now some law frim in california I think is suing me saying that they will contact the sheriff and all mthis other stuff. they metioned credit report etc. It was hard to hear there was so much back ground noise. any way I have a courtesy pay overdraft on my account and I was going to pull the money out and put it on a prepaid debit card but if I do this then I will be in the negative I spent weeks back in shape I had to close my account and open up a new one If I do this then I puts me in jepordy because I have to pay my mortgage in a few weeks and My limit on the courtesy pay is only 500 I live in colorado. Can they really sue me