Credit card company will try to collect and if they can't, then they will sell your debt to a collection agency. Collection agency will try to collect your debt by sending you nasty letters and phone calls. If they cannot collect they will either file a Judgement against you in a court or sell your debt to another collection agency.

If you can pay the debt:

I would highly suggest you to goto the court and settle this debt. You can make a deal and pay in installments. If you don't goto the court, a Judgement will be filed against you for a sum of money you owe.

If you cannot pay the debt:

Once a Judgement is filed against you, in few months all three credit agencies will be notified; Experian, Equifax & Transunion. It will show up on your credit history and your FICO score will drop. Then you will start receiving nasty letters from Law offices. No big deal. If someone contacts you about this debt, never discuss over the phone and waste your time. Just tell them not to contact you by phone and communicate everything by mail. Never tell them who is your bank, who do you work for etc. Just tell them you are unemployed and don't even have a car. Also if you pay them something, never use a check. Check will have your name, routing # and acct #. They can legally come after you bank acct. Always pay by Money Order ... :)

If you don't goto a court and a Judgement is filed against you, it will stay in your credit history for 3-15 years depending on the state you live and which state it will file under. This is called Statutes of Limitations (SOL). Every state has different debt collection laws. For E.g., if you live in CA and the Judgement was filed in CA, then the SOL is 4 years. After 4 years, the credit agencies will have to drop this Judgement from your credit history. If you are from OH, it's 15 years. Check - http://www.creditinfocenter.com/rebuild/statuteLimitations.shtml

Bottom line, a Judgement in your credit history will not look good at all. You will most likely be denied car loans, home loans, credit cards offers etc. I suggest you borrow money and settle this thing right away. If you don't, then you will spoil your credit history for years to come depending on SOL and also you will have to deal will harrasing calls and collection letters from time to time. Don't worry about them taking away your car and freezing your bank acct. I am guessing your debt is below 10K so it won't make sense for them to come after your car and yes ... be careful about giving them your bank info. Always communicate with a written correspondence.

Good Luck!!