Ignoring a collections account feels like the path of least resistance. For a while, it might even seem like nothing is happening. But the consequences build quietly — and eventually, they become very difficult to deal with.
Collection Calls Keep Coming
If you don’t respond to a collections account, the calls and letters continue — sometimes for months or years. The FDCPA limits how collectors can contact you, but it doesn’t stop them entirely unless you send a written cease communication request.
Even after you request they stop contacting you, the debt doesn’t go away. The collector can still sue you and continue reporting the debt to credit bureaus. The cease communication request only stops the contact, not the debt itself.
Your Credit Score Continues to Suffer
An unpaid collections account is a significant drag on your credit score. The damage is most severe in the first two years and gradually decreases over time. Under newer FICO models (FICO 9 and FICO 10), paid collections are ignored entirely — meaning paying does provide a score benefit if your lender uses these models.
Under older FICO models (still widely used by mortgage lenders), even paid collections count against you. Either way, the clock runs for seven years from the original delinquency date.
Risk of a Lawsuit
If the balance is large enough to justify legal costs, collection agencies can and do sue. In small claims court, cases as low as $500 to $1,000 may be pursued. For larger balances, civil court is common.
If you’re served with a court summons:
- Do not ignore it — ignoring a lawsuit results in an automatic default judgment against you
- Show up, respond, and if you have any defenses (wrong amount, wrong person, expired SOL), assert them
- Even if you can’t pay, you may be able to negotiate a payment plan through the court
Wage Garnishment Explained
After winning a judgment, a collector can request that your employer withhold a portion of your paycheck. Federal law (Title III of the Consumer Credit Protection Act) limits garnishment to:
- 25% of your disposable earnings, OR
- The amount by which your weekly disposable earnings exceed 30 times the federal minimum wage — whichever is less
States can set stricter limits — and some states prohibit wage garnishment for consumer debt entirely (Texas, Pennsylvania, North Carolina, South Carolina). Head of household exemptions may also apply.
Bank Levy Risks
With a judgment, collectors can also petition to levy your bank account — essentially freezing and taking money directly from your checking or savings account. Certain funds are protected from levy: Social Security deposits (if not commingled), disability payments, and in some states, a minimum balance.
Can You Actually Go to Jail for Not Paying Collections?
No — not for the debt itself. The United States abolished debtors’ prisons in the 1830s. A creditor cannot have you arrested for failing to pay a civil debt.
However, there are indirect scenarios where jail is theoretically possible:
- Ignoring a court order (contempt of court) — some states allow judges to issue arrest warrants for people who skip debt-related court hearings
- Willful failure to pay court-ordered child support
- Tax evasion (not standard consumer debt)
The important distinction: you can’t be jailed for the debt, but ignoring court process can lead to consequences.
Old Debt and the Statute of Limitations
Every state has a statute of limitations that limits how long a creditor can sue you to collect a debt. After this window closes, the debt is “time-barred” — collectors can no longer win a lawsuit against you for it.
Statute of Limitations on Debt by State
How many years creditors have to sue you for unpaid debt. After this window expires the debt is "time-barred" — though it may still appear on your credit report for up to 7 years. Always verify with a local attorney; laws can change.
| Alabama | 6 years | 6 years | 6 years |
| Alaska | 3 years | 3 years | 3 years |
| Arizona | 6 years | 6 years | 3 years |
| Arkansas | 5 years | 5 years | 3 years |
| California | 4 years | 4 years | 2 years |
| Colorado | 6 years | 6 years | 6 years |
| Connecticut | 6 years | 6 years | 3 years |
| Delaware | 3 years | 3 years | 3 years |
| Florida | 5 years | 4 years | 4 years |
| Georgia | 6 years | 6 years | 4 years |
| Hawaii | 6 years | 6 years | 6 years |
| Idaho | 5 years | 4 years | 4 years |
| Illinois | 10 years | 5 years | 5 years |
| Indiana | 10 years | 6 years | 6 years |
| Iowa | 10 years | 5 years | 5 years |
| Kansas | 5 years | 3 years | 3 years |
| Kentucky | 10 years | 5 years | 5 years |
| Louisiana | 10 years | 3 years | 10 years |
| Maine | 6 years | 6 years | 6 years |
| Maryland | 3 years | 3 years | 3 years |
| Massachusetts | 6 years | 6 years | 6 years |
| Michigan | 6 years | 6 years | 6 years |
| Minnesota | 6 years | 6 years | 6 years |
| Mississippi | 3 years | 3 years | 3 years |
| Missouri | 10 years | 5 years | 5 years |
| Montana | 8 years | 5 years | 5 years |
| Nebraska | 5 years | 4 years | 4 years |
| Nevada | 6 years | 6 years | 6 years |
| New Hampshire | 3 years | 3 years | 3 years |
| New Jersey | 6 years | 6 years | 6 years |
| New Mexico | 6 years | 6 years | 6 years |
| New York | 6 years | 6 years | 6 years |
| North Carolina | 3 years | 3 years | 3 years |
| North Dakota | 6 years | 6 years | 6 years |
| Ohio | 8 years | 6 years | 6 years |
| Oklahoma | 5 years | 3 years | 3 years |
| Oregon | 6 years | 6 years | 6 years |
| Pennsylvania | 4 years | 4 years | 4 years |
| Rhode Island | 10 years | 10 years | 10 years |
| South Carolina | 3 years | 3 years | 3 years |
| South Dakota | 6 years | 6 years | 6 years |
| Tennessee | 6 years | 6 years | 6 years |
| Texas | 4 years | 4 years | 4 years |
| Utah | 6 years | 4 years | 4 years |
| Vermont | 6 years | 6 years | 6 years |
| Virginia | 5 years | 3 years | 3 years |
| Washington | 6 years | 6 years | 3 years |
| West Virginia | 10 years | 10 years | 10 years |
| Wisconsin | 6 years | 6 years | 6 years |
| Wyoming | 8 years | 8 years | 8 years |
Sources: State civil codes and the CFPB. This table is for general education only — not legal advice. Consult a licensed attorney for your specific situation.
Important: Making a payment on time-barred debt in most states restarts the statute of limitations, giving collectors a fresh legal window to sue. If you’re considering paying a very old debt, consult an attorney first.
See also: What does it mean to default on a loan? | Does paying off collections improve your credit score?
If you’re ready to take control, bad credit loan options can help consolidate debt even after collections.
