Declaring bankruptcy will have an affect on your timeshare ownership. By including your timeshare in your filing for bankruptcy, you will eliminate your loan payment and any maintenance fees. If you can no longer afford your timeshare, declaring bankruptcy is one way that you can get out of these payments.
How to Include a Timeshare in Bankruptcy Filing
When you file for bankruptcy, you usually list all of your debts. Such debts could include loans, car payments, bills, etc. Your timeshare payments, loans, and maintenance fees should also be added to this list. All information and debts must be provided on your list. If you are filing for bankruptcy, you are no longer able to afford any of your payments and you will no longer have your timeshare once bankruptcy is final. You should always check with an attorney to find out specific laws that your state may have about bankruptcy and timeshare information. Until your timeshare is sold or made final in the bankruptcy, you still must pay your loans and maintenance fees on it.
Selling Your Timeshare Before Bankruptcy
Speaking with an attorney is a good idea before proceeding to sell your timeshare prior to filing for bankruptcy. There are many details in different states that could affect the outcome of this procedure. You want to be sure that selling your timeshare right before filing for bankruptcy does not affect your credit any more than it has to. In some cases, selling could be the best option. In others, including it in the bankruptcy filing is your best bet. Talking to someone about this is very important. Look into free sites to list your timeshare on if deciding to go ahead with selling it. In most cases, if you do end up selling your timeshare, you will only make about 10 to 30 percent of the price you originally paid for it. It is also possible to donate your timeshare to charity, if you'd rather not include it in your bankruptcy.
Speaking With the Timeshare Developers
If you are having a lot of difficulty being able to afford paying your timeshare loans and maintenance fees, it is a good idea to first speak with the timeshare developers. After telling them about the troubles you are having and the situation you are in with money and not being able to afford your payments, it may be possible for them to either buy back the timeshare from you or make some sort of deal where they take the timeshare back. It is always important to go over every option that you have before including your timeshare property in your bankruptcy filing. However, it still may end up being the best decision that you could make in your situation. Speaking with an attorney and the timeshare developers beforehand will help you in coming to the right decision.