How likely is it that a debt collector will sue you?

The borrowing landscape can be tough to navigate right now, especially for those who are carrying compounding debt at today's high rates. Case in point? Household debt is now sitting at a record high, credit card interest rates are closing in on an average of 23% and, as a result, more borrowers are starting to fall behind on payments after months of trying to keep up. And, for many borrowers, the shift from "late" to "seriously delinquent" can happen quietly, as can the repercussions that come with aging, unpaid debt.

As unpaid debt balances age, the tone of the collection efforts tends to change, too. The debt collection calls become more frequent, the collection letters grow more formal and in many cases, the threats of escalating actions become more common. When that happens, a more serious concern tends to set in about whether your delinquent debts could ultimately lead to a lawsuit and a judgment against you in court. But debt collectors don't sue everyone, and they don't sue at random. 

Legal action is ultimately a calculated decision, so how likely is it that a debt collector will sue you over your unpaid balances? Below, we'll detail the answer to this critical question.

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How likely is it that a debt collector will sue you?

The likelihood that a debt collector will sue you over an unpaid balance depends on the debt, the amount and how collectible you appear to be. While many delinquent accounts never make it to court, debt collection lawsuits are far from rare, especially for certain types of balances.

Credit card debt, for example, is one of the most commonly litigated forms of consumer debt. Original creditors and third-party debt collectors are more likely to sue when balances are large enough to justify the legal costs. Smaller debts may be written off or pursued through calls and letters only, while larger balances can tip the scale toward legal action.

Timing also matters. Lawsuits are more likely after months or sometimes years of nonpayment, particularly once a debt has been sold to a collection agency. At that point, the debt collector has typically purchased the debt for pennies on the dollar, making a lawsuit financially attractive if they believe they can collect what's owed.

Another major factor is how "collectible" you seem. If a creditor believes you have a steady income, valuable assets or a bank account that could eventually be garnished to repay the debt, the likelihood of a lawsuit increases. On the other hand, if you're unemployed, judgment-proof or already dealing with multiple debts in collections, a debt collector may decide legal action isn't worth the effort.

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What makes a debt collector more likely to sue?

Debt size is one of the biggest drivers in whether or not a debt collector will sue. Lawsuits are far more common for balances in the several-thousand-dollar range than for a few hundred dollars. Court fees and attorney costs mean debt collectors need a reasonable chance of profit.

The type of debt matters, too. Credit cards, personal loans and private student loans are often litigated more often than things like medical bills or utility accounts. Medical providers frequently sell debt to debt collectors who focus on volume rather than lawsuits, though exceptions do exist.

The age of the debt also plays a role, but not always in the way people expect. Debt collectors often sue well before the statute of limitations expires, since once that deadline passes, their legal leverage disappears. If a debt is approaching that cutoff, legal action may actually become more likely, not less.

Your response history can further influence outcomes. If you've ignored all communication, a debt collector may assume you won't respond to a lawsuit, either, increasing their chances of winning by default. Ironically, silence can sometimes make legal action more appealing.

What to do if you're worried about being sued over unpaid debt

If a lawsuit feels like a real possibility, there are steps you can take to reduce the risk or prepare yourself. Start by understanding your debt clearly. Confirm who owns it, how much is owed and whether it's still within the statute of limitations in your state. Debt collectors must be able to prove they have the right to collect, and many can't.

You may also want to consider opening a line of communication. This doesn't mean admitting liability or agreeing to pay the debt immediately. Even a written request for validation can slow the process and signal that you're paying attention to what's happening.

For some borrowers, pursuing their debt relief options can make sense, especially before things escalate. Options like debt settlement, credit counseling or even a structured repayment plan can sometimes resolve debts for less than the full balance and help you avoid lawsuits altogether. These options aren't right for everyone, but they're often easier than allowing the issue to escalate to the courts.

The bottom line

Debt collectors don't sue everyone, but they do sue often enough that the risk shouldn't be ignored. Larger balances, certain types of debt and signs that you're collectible all increase the odds, while inaction can sometimes make matters worse. A lawsuit is rarely the first step, though, and it doesn't have to be the last word. Understanding your risk, knowing your options and acting early can make a meaningful difference in how the situation unfolds.