What Happens If I Stop Paying Credit Cards?

The truth about lawsuits, garnishments, and long-term consequences

Falling behind on credit card payments is incredibly common—but most people don’t fully understand what happens next.  Stopping paying credit cards is something that has to be done to ensure that you can pay normal expenses. In stopping payments, many might expect a drop in their credit score, but they’re often blindsided when the collection calls escalate, lawsuits appear, or wages are garnished.

At Ashley F. Morgan Law, PC, we’ve helped thousands of people across Virginia deal with overwhelming debt. If you’re behind on payments—or worried you might be soon—here’s what really happens when you stop paying credit cards.

1. Your Credit Score Will Drop—But That’s Just the Beginning

The first and most visible consequence is damage to your credit.

• 30 days late: Creditors can report the delinquency to credit bureaus. A single missed payment may lower your score by 50–100 points.

• 60–90 days late: More missed payments cause deeper drops. Creditors may close your account or reduce your credit limits.

• 120+ days late: Most credit card companies “charge off” the account—marking it as a loss on their books. But this doesn’t mean you’re off the hook. They’ll likely send or sell the debt to a collection agency or debt buyer.

Even if you later settle or pay the debt, the missed payments and charge-off can stay on your credit report for up to 7 years.

2. Interest and Fees Keep Growing

Stopping payment doesn’t freeze your balance. Instead, late fees and penalty interest rates pile on.

• Late fees of $25–$40 are common each month.

• Many accounts apply penalty interest rates of 29.99% or more.

• Even if you never charge another cent, your balance keeps growing.

What starts as a $10,000 balance can easily balloon to $12,000 or more in a matter of months.

3. Collection Efforts Escalate Quickly

After a few months, most creditors send your account to a collection agency or sell it to a debt buyer. These companies may:

• Call you daily

• Send repeated letters

• Text or email you

• Threaten legal action

Although the Fair Debt Collection Practices Act (FDCPA) limits abusive tactics, collectors often push the boundaries. Some people believe that once a debt buyer or collection agency buys the debt, they no longer owe the money; this is untrue. Additionally, many people believe that once a debt is charged off, a creditor cannot collect collect on the debt. A debt that is charged off can still be collected upon; a charge off only means the debt is unlikely to be paid in normal course. After collections and charge offs, many creditors consider the next step filing a lawsuit.

4. The Debt Might Be Sold Again—and Come Back Later

Even if a debt seems to disappear, it can come back years later.

Debt buyers often wait until just before the statute of limitations expires to sue. Virginia’s statute of limitations is:

• 5 years for written contracts (most credit cards)

• 3 years for open accounts

But be careful: making even a small payment, or acknowledging the debt, can restart the clock. Most statute of limitations runs from the last payment or last activity on the accounts.

5. You Can Be Sued for the Balance Owed

This is where things get serious. Many people assume creditors won’t sue over unsecured debt—but they absolutely do.

In Virginia, common creditors like Capital One, Discover, Portfolio Recovery Associates, LVNV Funding, and Midland Funding file thousands of lawsuits each year.

Once you’re sued:

• You’ll be served with a court summons (usually as posted service — left on the door of your last known address). Personal service is NOT required in Virginia.

• If you don’t respond, the creditor gets a default judgment.

• With a judgment, they can begin wage garnishment, bank levies, and property liens.

Real Example: The “Ignore It and Hope It Goes Away” Backfire

A teacher in Northern Virginia stopped paying three credit cards after her divorce. After months of silence, she assumed the creditors had moved on. But a debt buyer filed a lawsuit she didn’t respond to. She lost by default, and suddenly $400 was being taken from every paycheck. We filed a Chapter 7 bankruptcy that stopped the garnishment and discharged all her debt—but the damage and stress were already significant.

6. Judgments in Virginia Can Last 10–20 Years

Virginia allows a creditor to enforce a judgments in General District Court for 10 years, and they can renew it for another 10 years. Additionally, Virginia allows a creditor to enforce a judgments in Circuit Court for 20 years, and they can renew it for another 10 years, followed by another 10. That means:

• They can keep garnishing wages or seizing bank funds for 20 to 40 years.

• Interest continues to grow the entire time; a creditor can get contractual interest, if requested, or at least 6% interest under statute.

• A $6,000 judgment can easily become $12,000+ with fees and interest.

Real Example: The Long-Term Judgment Surprise

One of our clients was sued in 2016 over a $7,000 credit card. She didn’t respond to the suit, and a judgment was entered. The client thought it was behind her—until 8 years later, when she tried to refinance her home and was told the judgment had created a lien on the property. She had to pay over $11,000 to clear the lien and close on the refinance.

7. Your Bank Account Could Be Frozen Without Warning

Once a creditor has a judgment, they can issue a bank garnishment—and you often won’t know until the money is gone.

Real Example: The Bank Account Freeze

A freelance worker had $1,800 in his bank account when it was suddenly frozen. A creditor had sued him months earlier and won a judgment at an old address. His account was levied without notice, and he couldn’t access his funds—causing bounced rent and utility payments. We helped him file Chapter 7 and discharge all his debt, but he lost that money permanently.

8. They Can Place a Lien on Your Home

In Virginia, judgment creditors can record the judgment in land records, creating a lien on your real estate. This doesn’t mean they’ll immediately force a sale—but it must be paid off if you ever sell or refinance. Debts may not attach to your home in certain situations, but it is common for a judgment lien to attach.

Real Example: The Zombie Debt Lawsuit

A man in Fairfax received a lawsuit for a credit card he hadn’t heard about in nearly six years. The creditor filed a lawsuit a few years prior. He had moved twice, and the court sent notice to an old address. He didn’t respond, and a default judgment was entered—plus interest and attorney fees. We were able to help through Chapter 13, but it was a surprise he didn’t see coming.

9. No—You Won’t Go to Jail

We often hear: “Can I be arrested for not paying my credit cards?” No, you cannot be jailed for unpaid credit cards. You also are not legally required to attend the civil lawsuit filed against you. If you do not attend, the court can find you liable for the debt (also known as a default judgment).

But you can get into trouble if you ignore a court summons for a debtor’s interrogatories (or a court order to answer questions).  In rare cases, a judge may issue a bench warrant (also called a capias), but jail is avoidable with proper legal help.

10. Bankruptcy Stops It All—and Offers a Fresh Start

If you’re overwhelmed, bankruptcy may be your best tool to stop:

• Lawsuits

• Garnishments

• Bank account seizures

• Judgment liens

• Foreclosures 

Chapter 7 Bankruptcy:

• Discharges most unsecured debt, including credit cards

• Stops all collection activity immediately

• Typically takes about 4 months

• Often allows you to keep your car, bank accounts, and retirement funds

Chapter 13 Bankruptcy:

• Stops foreclosure or repossession and allows time to get caught up

• Allows you to repay a portion of debts over time

• Especially helpful if you’re behind on mortgage or tax debt

Real Example: Credit Card Lawsuit Stopped Cold

A couple with $42,000 in credit card debt came to us after being sued. Garnishments were pending, and they were barely scraping by. We filed a Chapter 7 case, stopped all lawsuits, and discharged the full amount. Within a year, their credit scores had recovered to over 650.

11. Should I Try Debt Settlement or a Consolidation Loan Instead?

Maybe—but there are major risks:

• Debt settlement companies often charge high fees and don’t protect you from lawsuits during the process.

• Consolidation loans require good credit, and they just move the debt around—often without reducing it.

If you’re already behind, bankruptcy may be faster, cheaper, and more effective than either.

12. When Should I Call a Lawyer About Credit Card Debt?

The earlier you get legal advice, the more options you have—and the less damage you’re likely to face. You don’t need to wait until your wages are garnished or your bank account is frozen to ask for help.

Call a lawyer if:

• You’ve missed multiple credit card payments and can’t catch up

• You’ve received a collection letter or court summons

• You’re being sued or have a judgment entered against you

• Your wages are being garnished or your bank account has been frozen

• You’re overwhelmed by credit cards and just making minimum payments

• You’ve tried settlement or consolidation, but it hasn’t worked

• A debt collector or law firm is threatening to sue you

• You’re considering bankruptcy but don’t know if you qualify

• You want to protect your home, income, or retirement funds from creditors

Even if you’re not sure whether bankruptcy is the right path, a qualified attorney can help you understand all your options—and help you avoid making costly mistakes.

Conclusion: You’re Not Alone—And There’s Help

Stopping payment on your credit cards may feel like your only option, but the consequences can be long-lasting. If you’re behind, being sued, or already dealing with a judgment or garnishment, it’s time to get help.

At Ashley F. Morgan Law, PC, we help individuals and families across Northern Virginia protect their income, stop lawsuits, and eliminate debt through bankruptcy and other legal tools.

Schedule Your Free Consultation Today

Let’s talk about your situation. We’ll help you understand your options and make a plan that actually works—for you and your future.