Can criminal charges be pressed against me for defaulting on a secured loan?

I had a horse farm that I sold due to financial issues. The buyers asked to include a tractor in the sale which I agreed thinking I’d pay off the tractor loan once I went to settlement on the property. The day of settlement I found out the mortgage company charged me a 10% penalty for early repayment leaving me walk away with nothing. I am making payments on the tractor still but no longer have it in my possession. Struggling with the large payments, I called the tractor company and asked if I could work out a lower payment plan temporarily. When they asked why I am not returning the tractor, I explained what happened. The tractor company told me they will press charges even though I am up to date on the loan. I asked why I couldn’t continue making payments until it was paid off and they said I was still in default because I didn’t have the tractor anymore. Is this possible and what type of charges can they file against me?

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