What happens with timeshares??? need your thoughts..

[indebt00]

We had to give up our timeshare in our bk because we still owed on it and were making payments....but...

I have a family member considering the ch 13 route and they own their timeshare outright. they pay dues yearly.

what happens with that? I know its an asset...and trustee's don't like them...but in this market selling is really hard...so what really happens?? its not like they can give it back...they own it. and yes its deeded...although that made no difference for us.

can it be protected and kept?

[UpsideDownMI]

It depends on a number of factors. What is the value? Do they live a state that has "wildcard" exemptions? If so, will the wildcard protect the value of the timeshare?

In a 13, the yearly maintenance fee's could be an issue as the trustee may object to the expense unless they are in a 100% pay back plan. If the maintenance fee's are reasonable they may be able to list them as an expense "in lieu" of another expense such as recreation.

[indebt00]

we do not have wild card exemptions here.

basically its a no win situation.

[UpsideDownMI]

The only other option would be to make sure that the ch 13 plan pays it's unsecured creditors at least the value of the timeshare throughout the life of the plan. The unsecured creditors would also need to receive at least the value of any other non-exempt asset that they wish to keep. If they could do this, it is still possible for them to keep the timeshare, if the can get past the issues of the yearly maintenance expense.

[DebtEnder]

Under a 13 assets don't matter. In fact it's why many people that could do a 7 do a 13 instead as they have something they don't want to risk losing by trustee liquidation.

However as mentioned before it could be an expense that the ch13 trustee or other creditors might object to.

[indebt00]

Our lawyer basically said the trustee is never going to approve it. so we forfeited ours.

for my family member....if you actually own it outright and it doesn't have value the trustee won't approve the dues/fees and if it does have value they will condider it an asset and want to sell it.

so for us here...our trustee's....no keeping it either way...

[Tbornetun]

Under a 13 assets don't matter. In fact it's why many people that could do a 7 do a 13 instead as they have something they don't want to risk losing by trustee liquidation.

However as mentioned before it could be an expense that the ch13 trustee or other creditors might object to.

Not true, assets do matter. The chapter 13 can make is easier for people to keep an unexempt asset, but they would still have to pay for it. You can do the same thing in a Chapter 7. If you have an asset in a chapter 7 you can't exempt, you can pay the trustee for the value and keep the asset.

[DebtEnder]

Ok sounds fair enough. However I think in the OP'ss point it's mute as the TT won't allow the expense on any level.

[UpsideDownMI]

I just thought of an idea to help eliminate the expense issue. If the timeshare could rented to pay for the yearly expense, it might fly. Just a thought.

[indebt00]

I just thought of an idea to help eliminate the expense issue. If the timeshare could rented to pay for the yearly expense, it might fly. Just a thought.

We asked about this at the time we filed too and due to our large unsecured debt the lawyer basically said....this really isn't something you want to fight for and you don't want the additional examination....
we tried to be creative to keep ours but in the end we would rather be debt free and have our ch 13 approved with less hassle.

of course we are still waiting.....filed in July

[HHM]

In this market, timeshares are practically worthless.

First, it depends what sort of timeshare we are dealing with
1. Deeded real estate
2. Membership.

In either case, the expense is not going to be allowed as a budget item. So, you either pad the budget to make it work, or just get rid of it.

[indebt00]

In this market, timeshares are practically worthless.

First, it depends what sort of timeshare we are dealing with
1. Deeded real estate
2. Membership.

In either case, the expense is not going to be allowed as a budget item. So, you either pad the budget to make it work, or just get rid of it.

Ours was Disney and it was deeded real estate but that didn't matter. Our timeshare did have value but we followed our lawyer's advice based on how well he knows the trustees...and for us it wasnt' worth the fight...besides it was $250 mo payment...didn't want that either.