Timeshare question

[ortegah]

We have a timeshare/campground membership that isn't worth much. Probably 1-2k tops resale value as no one wants to buy a timeshare right about now. BUT it's in both my mother in law's name and my husband's. Since it also technically belongs to her as well, can they still count it in our Chap 7 as an asset?

That being said, if they tell me that it does count as our property and we run out of exemptions, they can have the silly thing.

Edited to add: this timeshare is fully paid for and has been for many years. So we owe nothing except for the yearly maintenance fees.

[ska]

When we filed we had a timeshare that with maybe $1,500 in equity. No one asked about it, but I think we included it in an exemption. I was really thinking it would have been considered a luxury item and we wouldn't be able to keep it. Still have it.

[ortegah]

Yeah well I'm not terribly worried about it. Like I said, if they want it bad enough they can have it. I really just want to know if it even counts since it's not just in my husband's name but also in his mother's name.

[2manybills]

We included our timeshare and no one said a thing about it.

[AngelinaCat]

Yeah well I'm not terribly worried about it. Like I said, if they want it bad enough they can have it. I really just want to know if it even counts since it's not just in my husband's name but also in his mother's name.

What you have is something in which you, your DH, and MIL share what is called "an undivided third interest". If you and your husband file, then you have to include the timeshare. But because MIL's name is also on the deed, and she isn't filing BK, the timeshare is 'encumbered' by her ownership of it.

In this economy as you said earlier, timeshares aren't selling and so it is not going to be worth the trustee's effort to go after it, and would probably cost more than it is worth to have the ownership split. Most likely the trustee will formally 'abandon' interest in it.

I hope this helps. Good luck.

[zpbk13]

We have our 341 in a couple of hours and I'm a bit nervous about what they are going to say regarding our timeshare. It's with Disney Vacation Club and they were holding their value until recently. We had it on the market for six months at one time and not one offer came our way. We have a lot of equity in it if there was a market for it. We want to keep it but if the trustee wants it and they think they can sell it, then have at it! Our attorney tells us not to worry and that the trustee will not want our timeshare. We will see!

[LSUTiger32]

We have our 341 in a couple of hours and I'm a bit nervous about what they are going to say regarding our timeshare. It's with Disney Vacation Club and they were holding their value until recently. We had it on the market for six months at one time and not one offer came our way. We have a lot of equity in it if there was a market for it. We want to keep it but if the trustee wants it and they think they can sell it, then have at it! Our attorney tells us not to worry and that the trustee will not want our timeshare. We will see!

We have the exact same issue a DVC membership that we actually want to keep. Our attorney told us the exact same thing, that the trustee doesn't care do deal with anything to do with a timeshare.

I am surprised you had it listed for six months and didn't get one offer. Was it stripped of points for the upcoming use year or something?

[ortegah]

What you have is something in which you, your DH, and MIL share what is called "an undivided third interest". If you and your husband file, then you have to include the timeshare. But because MIL's name is also on the deed, and she isn't filing BK, the timeshare is 'encumbered' by her ownership of it.

In this economy as you said earlier, timeshares aren't selling and so it is not going to be worth the trustee's effort to go after it, and would probably cost more than it is worth to have the ownership split. Most likely the trustee will formally 'abandon' interest in it.

I hope this helps. Good luck.

Thanks for the info! I don't mind keeping it, but it's no skin off my nose if they want it bad enough. I'm not willing to use it as an exemption if there's other more important things to keep in my wildcard exemptions. Shoot, if I want it bad enough I could save up and buy one from someone else down the line. I did a search on them and I have listings here for $1000 for the exact same timeshare.

[LSUTiger32]

Thanks for the info! I don't mind keeping it, but it's no skin off my nose if they want it bad enough. I'm not willing to use it as an exemption if there's other more important things to keep in my wildcard exemptions. Shoot, if I want it bad enough I could save up and buy one from someone else down the line. I did a search on them and I have listings here for $1000 for the exact same timeshare.

Please send me the list of DVC timeshares going for $1,000!!!!

[ortegah]

Not Disney. That's what someone else was speaking about. This is for a campground in Virginia.

[LSUTiger32]

Not Disney. That's what someone else was speaking about. This is for a campground in Virginia.

Oops! My bad!

[NewLifeAhead]

Thanks for the info! I don't mind keeping it, but it's no skin off my nose if they want it bad enough. I'm not willing to use it as an exemption if there's other more important things to keep in my wildcard exemptions. Shoot, if I want it bad enough I could save up and buy one from someone else down the line. I did a search on them and I have listings here for $1000 for the exact same timeshare.

Don't waste an exemption for a timeshare, especially only part interest. We have one, own it free and clear, listed it but didn't exempt it as per lawyer (lawyer put $0 value). Trustee joked about it at our 341 and abandoned it.

[ortegah]

Don't waste an exemption for a timeshare, especially only part interest. We have one, own it free and clear, listed it but didn't exempt it as per lawyer (lawyer put $0 value). Trustee joked about it at our 341 and abandoned it.

Thanks for responding! Nice to hear from experience

[zpbk13]

Okay. We had our 341 yesterday and the trustee never even mentioned our timeshare. I was very surprised. I thought it might be an issue because we have a mortgage but it is close to being paid off. So looks like we get to keep it. I actually heard from the bk department of Disney Vacation Club yesterday as they stopped our ACH payments from our account and said all I have to do is fax them a letter reinstating the auto payments and then either reaffirm the debt or continue to make payments. Of course we will opt to just continue making the payments.

LSUTiger - yes, we had it on the market for that long and no offers. Hilton Head is our home resort so maybe that had something to do with it being off site. We lowered the asking price several times and still no offers on our 170 point contract. Now I'm glad it worked out that way! Our mortgage is $138 per month with $74 in dues and we will be paid off in a few months. Not reaffirming the debt either.

[ortegah]

Okay. We had our 341 yesterday and the trustee never even mentioned our timeshare. I was very surprised. I thought it might be an issue because we have a mortgage but it is close to being paid off. So looks like we get to keep it. I actually heard from the bk department of Disney Vacation Club yesterday as they stopped our ACH payments from our account and said all I have to do is fax them a letter reinstating the auto payments and then either reaffirm the debt or continue to make payments. Of course we will opt to just continue making the payments.

LSUTiger - yes, we had it on the market for that long and no offers. Hilton Head is our home resort so maybe that had something to do with it being off site. We lowered the asking price several times and still no offers on our 170 point contract. Now I'm glad it worked out that way! Our mortgage is $138 per month with $74 in dues and we will be paid off in a few months. Not reaffirming the debt either.

Thanks for the info!