Q: Will my timeshare go away after 7 years in collections? I can't afford to pay or settle

A: Under California law, debts, including those related to timeshares, typically have a statute of limitations. This period defines how long a creditor or collector has to initiate legal proceedings to collect a debt. For most written contracts, including timeshares, this period is usually four years. However, the statute of limitations does not erase the debt itself; it only limits the legal actions creditors can take.

After a debt goes into collections, it can remain on your credit report for up to seven years, affecting your credit score and ability to obtain new credit. The seven-year mark is significant because, at this point, the debt must be removed from your credit report, but this does not mean the debt is forgiven or that the obligation to pay it disappears. Creditors or collections agencies might still attempt to contact you to recover the debt.

It's also important to understand that the specific terms of your timeshare agreement and any actions taken by the creditor could influence your situation. If you find yourself unable to pay or settle the timeshare debt, it may be beneficial to consult with a legal advisor who can offer guidance based on the details of your case and explore potential options, such as negotiating a settlement or understanding any legal protections you might have. Remember, ignoring the debt won't make it go away, and proactive steps are often key to finding a resolution.