Multiple vacationers appreciate timeshares for the ability to stay in luxury apartments and resorts annually, regardless of the high maintenance fees that every party who holds ownership should pay. Life circumstances might change rapidly, so an owner can not afford a timeshare anymore. If you want to get rid of timeshare payments, you should consider getting out of ownership itself – refer to a professional timeshare exit team for that. Today, we’ll discuss a no less popular issue – what happens if your timeshare goes out of business?
Timeshare bankruptcy: Цhat to know?
Timeshares are associated with some sort of luxury property during bankruptcy, resulting in no exceptions for covering them. Once you are willing to keep your property, you should reaffirm the debt. You become liable for the debt, even while bankruptcy is discharging; thereby, you can keep your timeshare property. However, owners risk losing timeshares once they default on the debt afterward. Keep in mind that further manipulations with your timeshare significantly depend on its type – there are right-to-use, deeded fractional interest, and point-based timeshares.
1. A right to use timeshare
If an individual owns this type of a timeshare, they receive the right to use the property during a determined week for some years. A right to use timeshare doesn’t provide an ownership interest – it appears like a lease. A trustee can continue the lease or terminate it. On the other hand, you can still keep a timeshare as the lease can’t be transferred, making a property depreciate.
2. A deeded fractional interest timeshare
Within such a timeshare, ownership of specific vacation property is separated into so-called weekly shares, allowing individuals to purchase ownership interests for a week throughout the year. A deeded fractional interest timeshare provides owners with interest in a piece of real estate, so bankruptcy relates to it like any other real estate property that is not a place of residence. As a result, a trustee can sell a timeshare.
3. A point-based timeshare
An owner can purchase several points and trade them in a point-based timeshare to use a vacation home. This type of timeshare doesn’t offer any interest for units and any parts during timeshare development.
How can I stop paying maint fees on a timeshare after bankruptcy?
Many owners don’t want to keep their timeshares, so they should consider listing the property as an asset they are willing to give up in a bankruptcy case. Once individuals surrender their timeshare, this lets them relieve obligations mentioned in a timeshare contract. Another scenario is that they are eliminating maintenance fees that we’re obligated to be paid by an owner before bankruptcy.
Are timeshare payments put on hold during bankruptcy?
One more important thing – some fees on your timeshare might be non-dischargeable during bankruptcy. They can involve fees for membership or associations of homeowners; however, check up on your timeshare structure to find out whether this clause works for your ownership.