you can spend the money to take him to court, he won't show up and you get a judgement. a judgement and $.50 will get you a cup of coffee.
the only way he pays back on a judgement is if he has good credit but if he had good credit he wouldn't have gone to you for a 10% personal loan.
i haven't really been following this thread...but will follow-up on jack's post....once you get a judgement against somebody you can go after their bank accounts or pay or hand it over to a collection agency....