{"id":587,"date":"2013-08-20T19:26:19","date_gmt":"2013-08-20T19:26:19","guid":{"rendered":"https:\/\/mn-bankruptcy.com\/blog\/?p=587"},"modified":"2013-08-20T19:26:19","modified_gmt":"2013-08-20T19:26:19","slug":"those-pesky-timeshares","status":"publish","type":"post","link":"https:\/\/mn-bankruptcy.com\/blog\/those-pesky-timeshares\/","title":{"rendered":"Those Troublesome Timeshares"},"content":{"rendered":"<p>A vacation timeshare can become like a stone around your neck. \u00a0I would say if you are thinking of getting one, don&#8217;t.<\/p>\n<figure id=\"attachment_589\" aria-describedby=\"caption-attachment-589\" style=\"width: 150px\" class=\"wp-caption alignright\"><a href=\"https:\/\/mn-bankruptcy.com\/blog\/wp-content\/uploads\/2013\/08\/grand-marais-sunset.jpg\"><img loading=\"lazy\" decoding=\"async\" class=\"size-thumbnail wp-image-589\" alt=\"Vacation Timeshares can be like a stone around your neck.\" src=\"https:\/\/mn-bankruptcy.com\/blog\/wp-content\/uploads\/2013\/08\/grand-marais-sunset-150x150.jpg\" width=\"150\" height=\"150\" srcset=\"https:\/\/mn-bankruptcy.com\/blog\/wp-content\/uploads\/2013\/08\/grand-marais-sunset-150x150.jpg 150w, https:\/\/mn-bankruptcy.com\/blog\/wp-content\/uploads\/2013\/08\/grand-marais-sunset-100x100.jpg 100w\" sizes=\"auto, (max-width: 150px) 100vw, 150px\" \/><\/a><figcaption id=\"caption-attachment-589\" class=\"wp-caption-text\">A vacation timeshare can be like a stone around your neck.<\/figcaption><\/figure>\n<p>A while back I heard from some people \u00a0I had done a Chapter 7 bankruptcy for in 2006. \u00a0After hearing nothing for years, out of the blue they were being sued for dues and maintenance fees by a timeshare company. The vacation \u00a0timeshare was owned at the time of filing the bankruptcy. \u00a0My clients were asking me the obvious questions: \u00a0Wasn&#8217;t that taken care of when we filed the bankruptcy? \u00a0How can they be suing us now?<\/p>\n<p>Timeshares are unusual animals and a bankruptcy discharge might not apply to the maintenance fees and ownership association dues which accumulate AFTER the filing of the bankruptcy. \u00a0Any fees owing from before the filing of the bankruptcy would, however, ordinarily be discharged.<\/p>\n<p>When it comes to fees which accumulate after the filing, the reason they might not be dischargeable is a provision among those that Congress added to the bankruptcy code in 2005, Section 523 (a) (16). \u00a0If you go <a title=\"Bankruptcy code section re homeowner association dues and fees\" href=\"http:\/\/www.law.cornell.edu\/uscode\/text\/11\/523\">here you can see it<\/a>, just scroll down to (16). \u00a0This was written mostly to apply to condo and homeowner association fees, but it also says &#8220;in a share of a cooperative corporation &#8230; for as long as the debtor or the trustee has a legal, equitable, or possessory ownership interest in such unit, such corporation or such lot &#8230;&#8221;<\/p>\n<p>Some timeshares involve real estate ownership and are a version of a condominium or townhouse setup. \u00a0Others are cooperatives that own the property and the customer gets a membership in the coop. \u00a0If you have either of these, you are probably liable for the fees which are accumulated AFTER the bankruptcy filing and continue to accumulate until you are no longer an owner. \u00a0This is or can be a terrible spot to be in, because many of these places have quit trying to take back the units when they are not being paid for. \u00a0Most of them are worth little or nothing and can&#8217;t be sold. \u00a0A timeshare owner might be stuck with it indefinitely.<\/p>\n<p>However, if you merely have a contract that gives you a license to use the facilities during a certain time, without any sort of ownership of the property, then liability for the fess would probably not continue after the bankruptcy filing. \u00a0The bankruptcy should kill it for good. \u00a0So exactly how the timeshare is set up makes a big difference. \u00a0 I have looked over many stacks of timeshare documents, some of them even in foreign countries. \u00a0Those papers tend to be very hard to wade through, very hard to figure out. \u00a0I can read and write, and I even went to law school, but sometimes it can be hard to figure which category a certain timeshare setup belongs in.<\/p>\n<p>If you have a timeshare of any kind and are considering bankruptcy, be sure to tell your lawyer all about it. If you can sell it before filing the case, you probably should. \u00a0Make your best effort to figure out whether it has a market value and what that is. \u00a0Provide your lawyer with all the paperwork you may have about it. \u00a0Make sure it is properly listed and properly described in your bankruptcy petition, and make sure that whoever is running the organization gets notice of your bankruptcy filing.<\/p>\n<p>Then cross your fingers, hold your breath, or better yet &#8211; \u00a0pray a lot. \u00a0Hope the darn thing goes away.<\/p>\n<p>As with any other financial matter, if you are considering a bankruptcy, don&#8217;t make any serious moves without consulting your attorney first.<\/p>\n<p>This post is for general information purposes only and is not legal advice. \u00a0It does not create an attorney-client relationship. \u00a0If you need legal advice, please consult the attorney of your choice.&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>A vacation timeshare can become like a stone around your neck. \u00a0I would say if you are thinking of getting one, don&#8217;t. A while back I heard from some people \u00a0I had done a Chapter 7 bankruptcy for in 2006. \u00a0After hearing nothing for years, out of the blue they were being sued for dues &hellip; <\/p>\n<p class=\"link-more\"><a href=\"https:\/\/mn-bankruptcy.com\/blog\/those-pesky-timeshares\/\" class=\"more-link\">Continue reading<span class=\"screen-reader-text\"> &#8220;Those Troublesome Timeshares&#8221;<\/span><\/a><\/p>\n","protected":false},"author":2,"featured_media":589,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[1],"tags":[170,208,118,169],"class_list":["post-587","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-consulting-with-a-lawyer-concerning-bankruptcy","tag-filing-process","tag-how-does-bankruptcy-work","tag-information-required-to-file-bankruptcy"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.7 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Those Troublesome Timeshares - Better Call Dave - Bankrupt MN Blog<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/mn-bankruptcy.com\/blog\/those-pesky-timeshares\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Those Troublesome Timeshares - Better Call Dave - Bankrupt MN Blog\" \/>\n<meta property=\"og:description\" content=\"A vacation timeshare can become like a stone around your neck. \u00a0I would say if you are thinking of getting one, don&#8217;t. 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Sometimes that seems like a long time, and other days I feel as if I just started. These days my practice is devoted entirely to counseling folks concerning their financial problems and representing them in Chapter 7 and Chapter 13 bankruptcy. One thing I don't do is credit repair. When asked about matters concerning credit scores, I like to say \\\"I'm a very good source of unreliable information about that.\\\" What I mean is that I hear a lot about it from my clients who often report back to me how they are doing after their bankruptcy is completed, sometimes even years later; but having heard some stories from a few people doesn't qualify me to give any advice. I spend a lot of time with my clients. I want to be sure we get it right. There are civil and criminal penalties for concealing or providing incorrect information in a bankruptcy care, and my goal is to keep myself and my clients as far away from problems like that as possible. 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