keeping timeshare with past due fees

[vacas47]

Was wondering if anyone has run across my situation with a timeshare. We filed chapter 7-no assets. Our timeshare is owned free and clear and does have a deed. We owe about 2,800 in past due fees, late fees and I believe some of it might be fees for their attorney from awhile back. My attorney listed the timeshare being worth about 3,000. He also included the fact that we owe 2,800 on it. He did not include it on the statement of intentions. He said it isn't necessary. He said we should just be able to write a letter to the timeshare company stating the we want to keep the timeshare and continue to make our yearly maintence payments and it should be fine. Has anyone else done this? Do they ask you to pay your past due amount first? Do they usually make you sign an agreement? Is this considered not that big of a deal that I don't have to tell the courts (or ask) that I want to keep it? If I sent a letter myself stating my intentions is this the same as a reaffirmation agreement?
Thanks

[justbroke]

The past due fees are probably secured debt, but I'm no expert in Wisconsin Condo Associate/Homeowner Association law with respect to "statutory" liens. In any event, the past due assessments may not actually be dischargeasble. That means that you would still owe them, and the timeshare would be able to foreclose in order to recover those past due fees. In many cases, it's better for the timeshare to foreclose and buy it back from themselves and just, literally, give them away. They depend on the assessments being paid and would rather have a new owner that is more likely to pay, than one that has had trouble in the past.

At least that's my read from the number of $1 timeshares for sale on e-Bay and other re-sale sites.

As for the Trustee wanting the property, it is HIGHLY LIKELY that the Trustee will abandon it. Trustees generally stay away as far as they can from timeshares as they are never profitable. A timeshare is not a real estate investment instrument. It's just a prepaid vacation.

[tcreegan]

Hi vacas,

Has anyone else done this? .....yes

Do they ask you to pay your past due amount first? ....no

Do they usually make you sign an agreement? ...not a new one

Is this considered not that big of a deal that I don't have to tell the courts (or ask) that I want to keep it? .....no

We had a timeshare and were still paying on the loan we bought it with. Loan balance was higher than value (not hard to do) so there was no equity. Put it in the schedules, marked "surrender" on the statement of intentions.

Not only did the trustee abandon it, so did the finance company....the only people who cared were the property management company. They offered to take it in exchange for the fees....post-petition fees, mind you, all pre-petition fees were discharged.

I think most of the property managment companies like you to think they have a lien on the property, but I suspect most don't go through the legal hoops to actually get a lien attached/perfected.

If I sent a letter myself stating my intentions is this the same as a reaffirmation agreement? ...oh no, not even close. A reaffirmation is essentially a set of loan documents, lots of disclosures, you sign, they sign, attorney signs, ...and in your case never should happen, never ever. justbroke gave the main reason: the timeshare is probably worth $2.80 instead of $2,800. The other reason is that it is highly likely the $2,800 will get discharged in the BK. Then you do what your attorney said, call them up and start making the maintenance fees.

Good luck with it,

Tom in Colo

[tcreegan]

Is this considered not that big of a deal that I don't have to tell the courts (or ask) that I want to keep it? .....no, not a big deal

sorry, cut it off too short there...

[vacas47]

Went to our 341 meeting and not a word mentioned about the timeshare. I also talked to someone from the timeshare. They said to send a letter to them after the bk is done and let them know that we want to keep the timeshare and begin again to pay our yearly fees. As long as I know this isn't the same as signing a legal paper to reaffirm then that's what were going to do. He also said they would send me a new bill with the correct amount due from after the filing date. Not sure but that sounds like they may not make me pay the past due balance. Hope thats right!! Anyway thanks for all the info!!

[justbroke]

That would be cool.

[tcreegan]

Very nice vacas!

Same thing happened for us, didn't sign anything, property management started billing for post-petition maintenance, none of the prepetition was even mentioned.

Couple nice timeshare BK success stories!

Good Job vacas!!

Tom in Colo

[SweetGeorgia]

Went to our 341 meeting and not a word mentioned about the timeshare. I also talked to someone from the timeshare. They said to send a letter to them after the bk is done and let them know that we want to keep the timeshare and begin again to pay our yearly fees. As long as I know this isn't the same as signing a legal paper to reaffirm then that's what were going to do. He also said they would send me a new bill with the correct amount due from after the filing date. Not sure but that sounds like they may not make me pay the past due balance. Hope thats right!!

I'd like it very much if our situation works out the same. Actually, our timeshare was mentioned at our 341 - by me, because I had forgotten to put it down as an "asset" - although our lawyer quickly pointed out that the timeshare debt was properly listed. The trustee said something about "timeshare an asset, good one!" and it was abandoned.

We actually owned it free and clear but the maintenance fees had accrued for 3 years and increased a LOT in that time; I think the total was almost $8,000. The property records indicate that we still own it, no liens. I wouldn't mind just paying now and moving on, but if they wanted all the back payments I'd just let them keep it.

[tcreegan]

The trustee said something about "timeshare an asset, good one!"

[justbroke]

The trustee said something about "timeshare an asset, good one!"

Now that's funny stuff.

[tobee43]

Now that's funny stuff.

,

well, that is funny, i'm guessing this trustee has not been in florida if he/she thinks it's an asset!

we also had one...with a "deed" in disney actually........the fees were so high and we owned it free and clear and gave the thing back....b4 the filing since for what the maintence fees were getting up to we could fly to paris first class and stay a week or two!! LOL..(just kidding, but they were approx 2500 yearly since we had two weeks). we also found, of course like many other people...we almost never used it.

i'm guesing it depends on whether it's considered an asset or not....shoot when be purchased it WE thought it was...hope it goes smoothly!!