Failing to pay your credit cards as promised is rarely a criminal offense, but can greatly impact your finances and ability to gain new credit in the future, according to the book "How to File for Chapter 7 Bankruptcy."
Legal Considerations
You can only be prosecuted for failing to pay a credit card bill if you lied to get the account or charged large amounts to the card right before filing bankruptcy, according to the book "How to File for Chapter 7 Bankruptcy."
Financial Risks
Not paying your credit cards on time will lead to seven years of negative credit reporting, according to Experian. Also, you can be sued for credit card non-payment and have a portion of your wages garnished, according to the book "How to File for Chapter 7 Bankruptcy."
Lawsuit Time Frames
Credit card companies can't legally sue you whenever they wish for unpaid debts, according to CreditCards.com. Each state has a statute of limitations under which creditors can legally sue residents for non-payment of debt; the statute of limitations in Michigan is six years while the applicable time frame in Virginia is three years.
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