6 Things to Consider Before You Give Away Timeshare Interval.

6 Things to Consider Before You Give Away Timeshare Interval.

Over the years, we’ve seen how difficult fractional ownership can be. Whether owners are forced to deal with limited availability or unexpected fees catch them off-guard, none of them deserve to be trapped in a costly, disadvantageous agreement. While it’s easy to assume regret would only haunt first-time-buyers, plenty of current owners experience buyer’s remorse on their 2nd or 3rd timeshare purchase. Nobody expects to spend this much money on a bad result. But when the property isn’t what it was thought to be, disgruntled buyers usually want to know how they can get out of fractional ownership. Over time, some are ready to simply give away timeshare intervals just to be able to walk away from the burden.

For many owners, the thought of getting rid of the financial obligation never even crossed their mind. A good portion of buyers are commonly distracted by the anticipation of going on vacation once per year at a discounted rate. Even when inconvenience or uncertainty occurs, optimism remains. Because they’re nurtured by sales teams, buyers never really even think to look at the contract to gain a better understanding for what it entails. It’s mind-boggling how people will haggle over the details of a car purchase or home renovation but they rarely think twice about a $20-40K timeshare mortgage. Well, until they realize there’s a problem. 

The problem is, perpetual timeshare contracts include a rescission (or cancellation) period that rarely exceeds a week. While the time frame was recently extended in the state of Arizona, it’s still not a lot of room for buyers to truly garner a feel for the timeshare experience. Unless they immediately review the terms or attempt to book their condo, they aren’t really given an opportunity to change their mind. Because of this, grief surrounding the purchase usually doesn’t build up enough momentum for the owner to take action until after they’ve paid a hefty sum to the resort. Sadly, many owners spend an awful lot of money trying to make it worthwhile.

older-woman-staring-at-ocean-while-on-vacation-at-condo-thinking-about-giving-away-timeshare-interval

A Timeshare Purchase Can Change the Buyer’s Perception.

Like we mentioned in last week’s article, the journey of finding satisfaction or relief as a timeshare owner can be an adventurous one. The overwhelming number of bait and switch tactics, not to mention the flat out lies, can leave fractional owners frantically seeking a solution that doesn’t devastate them financially. Unfortunately, it can even cause them to delve into some misconduct themselves. Either way, a majority are desperate to find a way out of their timeshare.

While affordable options may seem like the only ones, they normally end up bad. When sales pitches seem promising, they normally aren’t. As soon as you feel like you’ve found light at the end of the tunnel, it quickly dims. We know it can be tough and easy to give up hope. Being victimized over and over tends to cause people to act irrationally. While abandoning a timeshare may benefit you in the long run, there are some ways it can work against your goals.

Should Buyers Give Away Timeshare Agreements?

Before you go all-in and try to donate a week to charity or give away timeshare obligations, try to think as logically as you can. Nothing in the timeshare industry is as easy as it seems. Making an informed decision is a lot better than desperately off-loading a timeshare to anyone that will take it. With that being said, here are six things to consider before giving it away.

woman-gazing-at-sky-on-back-on-grass-thinking-about-what-to-do-with-her-vacation-ownership-during-picnic

1. The Decision to Dump is Only Step 1.

When it comes to canceling your timeshare, there are a plethora of options for owners to choose from. Making the decision to give away timeshare contracts can be a tough one when there are hundreds of sales pitches flooding your inbox. Every offer is going to cause you to second guess your decision. You have to realize that no matter what you decide, hesitation will occur because of what you’ve already been through.

Psychology aside, giving away a timeshare isn’t as easy as signing over the title to a car. In case you didn’t know, timeshares are listed for $1 on eBay right now because tens of thousands of people don’t want them, and no one is bidding. Not only do most charities now avoid accepting timeshare donations, but most organizations are skeptical of them. The perception of the industry isn’t doing too well right now and hasn’t been for awhile. If you think you’re the only fractional owner willing to give away timeshare obligations for free, you’re in for a big surprise. 

Like many buyers who dabble in resale, the waiting game can be costly. So before you get excited about dumping the property for nothing, realize it’s going to be tough to get someone to take it on. If you’re not prepared for this, it can be another devastating blow that wasn’t expected.

2. Give Away Timeshare Scams Exist.

The concept of giving away timeshare contracts hasn’t been around long but it didn’t take long for disinterest to grow. When you really take the time to think about it, expecting the burden of the purchase to vanish because someone else took over is pretty ridiculous stuff. But fraudulent operations have known that people have a desire to offload and walk away from timeshares. Like resale and exit scams, they know how to deceive owners and sell them on “donation services”.

timeshare-scams-con-people-into-believing-donating-a-purchase-is-a-good-idea-but-its-deceit

Scams in the timeshare industry are dangerous because of the perpetual contractual obligation. Owners may believe they’re free and clear of this contract only to find out their liable for a boatload of fees at some point in time. Criminals know how to lead people on long enough to collect a nice amount of cash and disappear into another fraudulent operation. So if you really want to give away timeshare obligations, make sure you actually are. Taking the time to thoroughly research those offering you help can be invaluable in the end.

3. Failed Transfers and Donations Can Happen.

While finding a willing recipient can be challenging, ensuring they follow through can be a whole new ballgame. Aside from learning how to identify scams, you should also look into the process of a deeded timeshare transfer so you know how to properly execute one when the time comes. Since time sharing is already suspicious to most, you have to realize some potential recipients are going to get cold feet or change their mind. This is almost inevitable if you don’t know what you’re doing.

Some timeshare owners are able to use 3rd party companies to help them find recipients. While their contact list and experience might be superior to your capabilities, it doesn’t always mean they’re going to be able to help. If the resort blocks the transfer, then there’s not much you can do. It’s just like hiring a litigation attorney to sue the resort, only to lose the lawsuit. Although their intent might not be to scam you, you’re still left without resolve and more timeshare-related bills. 

4. The IRS Might Have Some Questions.

For the most part, donations on your tax returns aren’t too much cause for concern. But when it comes to the timeshare industry, government agencies know how desperate owners can become. While the risk of being contacted by the Internal Revenue Service is higher when you give away timeshare contracts, it doesn’t necessarily mean you’ll accrue a penalty. At the same time, no one likes dealing with the IRS.

older-man-at-kitchen-counter-looking-displeased-because-he-cant-give-away-timeshare-weekly-interval-as-easy-as-thought

The point is, if you haven’t written off a donation before then you might be caught off guard during tax season. You might even experience some grief down the road once you’ve moved on – forcing you to relive the regret. If you’re going to give away timeshare weeks then make sure you’re taking the time to include all of the details on your tax returns. It‘ll be worth every second.

5. Some Timeshare Obligations May Still Remain.

One of the most unfortunate situations for timeshare owners is when they believe they’ve gotten rid of the property only to find out it was just the mortgage. Deeded fractional ownership comes with a number of additional charges that many aren’t privy to on the front end. If you decided to upgrade at some point during the process, giving away timeshare weeks may still leave you with some obligations.

Aside from unknowingly being responsible for multiple contracts, many timeshare owners aren’t relieved of their duty to pay annual dues. Maintenance fees and special assessments can really add up over time. Especially if the owner isn’t aware they’re still being charged. Often times, foreclosure is initiated before they realize the obligations are still in their name. Talk about deja-vu.

deja-vu-look-by-aging-woman-in-glasses-zooming-on-surprised-look-because-of-facts-around-giving-away-timeshares

6. Legally Exiting the Agreement is a lot Easier.

If you’re truly on the fence about your timeshare property, that’s okay. No one should expect you to make uncomfortable decisions when it comes to getting rid of it. But, you do want to permanently exit the timeshare right? While hiring a cancellation company can be intimidating, the fact of the matter is: giving away timeshares is extremely risky. Even if you’re able to find someone to take it off your hands, they’re more than likely going to contact you when it doesn’t work out.

Research Your Options Before Giving Away Timeshares.

If you have a quality timeshare property that’s been good to you over the years then we encourage you to gift it. But if the purchase has caused you so much grief that you’re willing to do anything to escape the timeshare, then morally you really shouldn’t dump the burden on someone else. Even if other relief programs have burned you in the past, we’re willing to earn your trust. Our attorney based process has turned out 100% satisfaction ratings since 2014. We do things different at VOC.

While it might be tempting to give away timeshare obligations to a gullible party, eliminating your responsibility for good will give you a lsting peace of mind. Investing in a proven process will take the burden out of your hands and help you reach your goal of terminating ownership. If you want to learn more about our culture and the results of our clients, feel free to schedule a consultation or click on our eligibility form below.

Failed Timeshare Development in South Carolina Goes Bankrupt

Failed Timeshare Development in South Carolina Goes Bankrupt

An Ocean Boulevard property down in Myrtle Beach, South Carolina recently gave up on their quest to build a popular destination in the U.S. Southeast. Sand Castle Timeshare Owners Association Inc is now filing for bankruptcy in order to deal with their unobtainable dream. The failed timeshare operation got started back in 2007 by putting 2,028 weekly intervals on the market. But the operation quickly realized the demand for their resort just wasn’t there. Over the last decade, only 35% of their units have been occupied. 

Leading up to court proceedings, the exact reasoning behind the noteworthy timeshare downfall has been vague at best. It’s been deemed one of the oddest bankruptcy claims to hit the South Carolina docket in a while. Local attorney from Nexsen Pruet, Rick Mendoza, told local news outlets that the filing was unique to anything the state has ever seen. He currently represents the failed timeshare owner’s association with law partner Ron Jones. He said, “This is the first time I’ve been involved in something in this particular situation.” 

Apparently, hundreds of timeshare owners initially invested in what was once called Sand Castle South, only to simply lose interest. Although the property management company purchased two full floors at the popular Sandcastle Oceanfront Resort in one of the most popular tourist cities in America, they weren’t able to keep buyers engaged. In the end, investors-turned-fractional-owners quietly stopped paying the obligations that kept the resort alive. Maintenance fees and other costs were abandoned, along with essentially all the 39 vacation units across both floors.

Secondary Investor Plays Role in Failed Timeshare

What makes the bankruptcy claim interesting is the fact that Sand Castle South received financial help from Festiva Adventure Club back in 2013. Herbert H. Patrick claims his company took a chance on the Myrtle Beach resort by purchasing its unsold inventory – even though it was on the verge of becoming a failed timeshare. While Patrick acknowledged the deal was not “financially well” from the get-go, he told reporters he believed his experience in the industry would stabilize the operation.

You see, Patrick’s Festiva Adventure Club is a derivative of another one of his companies called Zealandia Holdings. This venture is a stakeholder in a number of timeshare investment projects. Oddly enough, Patrick is also the president of the Bankrupt Owners Association. During July 9th’s meeting of creditors, he remembered being overly optimistic even though “the association (he invested in) was on the verge of bankruptcy.” After funneling over $1 million into the revival of Sand Castle South, he thought it would only be a matter of time before he’d reverse the resort’s previous fortunes

But unlike Patrick’s other investment ideas, he quickly found out “there just wasn’t any usage for those weeks.” After paying nearly $1000 for every interval, Festiva Adventure Club was unable to cultivate any public interest and eventually walked away, officially classifying Sand Castle South as a failed timeshare investment. After five years on lifeline, the resort lost its financial heartbeat and Patrick moved on to pursue other financial obligations with alternative investors.

Did Sand Castle Ever Stand a Chance?

Since the summer of 2019 began, all of Sand Castle’s condos have basically been vacant. While some owners are still considered in “good standing,” there aren’t a lot of perks to owning a piece of this failed timeshare operation. The property management company has never been able to figure out how to sell their units or how to hold their buyers accountable for payment. It’s hard not to assume something fishy is going on down in the Southeast. It wouldn’t be surprising considering a multitude of scams swallow up consumers in this popular tourist region.

Either way, the five hundred – or so – fractional owners at Sand Castle South will be receiving a lovely notice of foreclosure soon. The good news is, after creditors are paid in full, leftover proceeds could be paid to the timeshare owners who remained current. According to Rick Mendoza, the property management company hopes to sell the remaining 39 units at a court auction. Jones claims they are currently “looking for a buyer.” Hopefully a successful tenant at the Sandcastle Oceanfront Resort can take over and turn things around.

Failed Timeshare Ownership Isn’t Always the Buyer’s Fault.

The outcome of this story goes to show how unpredictable buying a timeshare can be. Hundreds of failed timeshare operations impact the pockets of consumers every year. While it may be difficult to see something like this coming, there are certain things you can look for to avoid let down. Before you agree to buy into something that seems promising, make sure you’re sure it’s best for you.

If you find yourself in a timeshare contract that just doesn’t make sense, there’s no reason to give up hope. Being proactive and exhausting all of your options with the resort will inevitably help you legally walk away from your agreement, free and clear of all obligations. Preventative measures will help you avoid foreclosure and the thought of facing bankruptcy yourself. To learn more, you can schedule a free consultation with us or proceed with an eligibility form below.

Should You Donate Timeshare Purchases to Charity?

Should You Donate Timeshare Purchases to Charity?

If you’re thinking about donating a timeshare to charity then we’d like to first acknowledge your good intentions. But if you’re trying to get out of fractional ownership because you’re terribly disappointed with the purchase, then you might want to reconsider the gesture. Tens of thousands of vacation owners are currently looking for relief. Many of them have already wasted thousands of dollars trying to escape their perpetual agreement without prevail. So why would you donate timeshare woes to a good cause?

While there is a chance the recipient might put the condo to better use than you, there’s a high probability they’re going to absorb an unexpected burden. Kind of like what happened to you. We know this because we’ve spoken to a number of charities looking to get rid of donated timeshare contracts. They want nothing more than to remove the liability from their books. Deep down, you probably know they’ll experience the same as you. Why would you want to be like the person that sold you on the purchase and broker a misleading timeshare donation?

head-scratching-bearded-man-thinking-about-dumping-instead-of-gift-timeshare

Remembering What a Timeshare Donation Would Entail

Our company has been able to thrive in a market full of short-lived operations because integrity is important to us. Even though there might still be some charities that accept timeshare donations, we don’t want them to incur the burdensome purchase any more than we want you to. It may be an opportunistic way for you to escape the hostage situation you’re in, but it’s not the right thing to do. In order to remind you of the hindrance, here are some of the primary reasons fractional owners want to donate timeshare obligations in the first place.

1. Poor Availability. 

The first thing owners typically notice is their inability to book the condo. Available dates tend to be during inopportune times and buyer’s plea for help is often met by sales pitches for upgrade options or points and exchange programs. Being forced to spend more to make the purchase worthwhile isn’t always that appealing to them. They usually don’t notice the inconvenience until after the rescission period ends, trapping them in perpetuity.

2. Sales Deceit. 

Vacation owners normally begin to see the deceit unfold once they realize they were lied to during the initial presentation. Sales reps are thoroughly trained to pitch the possibilities of timeshare ownership while avoiding the terms of the agreement. When they succeed at creating excitement, it makes it easy for them to garner a signature. A sense of betrayal can be tough for buyers to deal with, especially when they can’t even use the property. We can understand how this can cause so many owners just want to donate timeshare contracts and move on.

young-guy-sitting-on-vacation-bed-waiting-to-book-perfect-timeshare-reservation

3. Financial Surprises. 

Unexpected costs can really create some strain around the purchase. When salesman do a great job at avoiding contract terms, owners aren’t privy to actual costs. Unfortunately, many buyers unexpectedly receive maintenance fees and special assessment charges at the end of the year. If they’re already overwhelmed by interest rates, taxes and related expenses, then these bills become rather concerning. Some people can’t afford the timeshare when the monthly cost is double their anticipation. Either way, an unexpected, higher price tag causes a lot of spite towards the purchase and the same can occur for those receiving a timeshare as a gift.

4. Irrational Decisions. 

After the first three epiphanies, most timeshare owners are ready to walk. But the timeshare company wastes no time in reminding them of the repercussions of this decision. Since the legally binding contract forces them to pay, many eventually give in to the resort’s solutions. In other words, they upgrade or purchase points. Often times, this doesn’t work in their favor, causing them to lose faith in the resort altogether. It can be gut wrenching when they think their problem is solved, only to be further in the hole.

5. Resale Losses. 

At this point in the purchase, a good number of owners start looking into resale and rental opportunities. Many salesmen tell potential buyers this is an option if the timeshare doesn’t work out. It’s just another ploy to get them to sign the contract. In reality, there is no resale market for timeshares. You can buy one for $1 on eBay because people are so willing to get rid of them. When more money is wasted and the property doesn’t sell, many buyers become desperate to off-load the unwanted, costly purchase. 

middle-aged-man-unhappy-with-timeshare-thinking-of-gifting-it-to-charity-unethically

6. Third Party Fraud. 

Once desperation sets in, owners start looking to 3rd parties for relief. If you’ve taken the time to research the industry then you’ll know a majority of relief programs are scams. If you’re not informed on how to identify misconduct, then you can really get taken advantage of. Lawyers also lead owners to believe they can help. But once owners have been embezzled enough, they’re willing to do anything to dump the burden. It’s a primary reason why they become eager to just donate timeshare purchases and move on.

7. Liability Concerns. 

The last hindrance that causes owners to think unethically is the simple fact that their heirs might have to take on the burden when they pass. Knowing someone else will have to face the same costly consequences they did is disheartening. Most people are willing to do whatever they can to protect those they love.

crying-older-father-embarrassed-by-timeshare-purchase-and-desire-to-donate-contract-to-protect-child-from-ingeriting-burden

With that being said, why should someone else have to deal with the expense because you decided to donate the timeshare? Especially when you gift timeshares to charitable organizations. It’s highly likely recipients will experience a handful of the aforementioned pitfalls. Because of the inconvenience that gifts like these have caused in the past, most charities no longer accept deeded timeshare donations.

Aside from finding someone willing to take the purchase off of your hands, you have to be careful about who you do business with. The level of fraudulent activity by companies claiming to help people donate timeshare properties is growing. Like other extortionists within the relief industry, they know how to trick you. If you happen to go through with the donation, do everything you can to avoid getting scammed.

If You Really Want to Donate a Timeshare Purchase…

If you really feel the need to give away your property, there are a few things you need to consider in order to properly donate timeshare contracts. First and foremost, the donated timeshare has to be paid off or have a satisfied mortgage (free and clear). From here, you’d have to approach the donation as a transfer. Like we mentioned before, finding a company to help you with this is extremely risky. 

So before you go through with the decision, ask yourself a few questions. Does the recipient know anything about timesharing? Will the deeded timeshare donation allow the charity to make a profit? Are you willing to disclose that the resale market is nonexistent if they plan to sell it or rent the condo? Will the timeshare be advantageous for the recipient or will they be able to use it in ways you could not? Are you really okay with handing off the burden out of selfish ambition?

woman-trying-to-make-best-decision-on-something-and-worried-about-donating-timeshare-to-charity

Take the Time to Review Your Options Before Donating.

Listen, we understand how big of a deal it is to be able to legally cancel timeshares. We also understand how the deceit behind most timeshare solutions can make you feel like you have no choice but to look out for yourself. If you donate the timeshare it would all go away. But you’re not alone and you don’t have to feel trapped in your agreement anymore. We want you to know there are quality timeshare cancellation services available. You don’t have to deal with the guilt that comes with off-loading a bad purchase to an innocent party.

Since 2014, we’ve taken pride in our 100% satisfaction ratings. We’ve helped plenty of owners just like you terminate timeshare contracts. There is no reason fractional owners should feel like they have to donate timeshares anymore. Our knowledge of the industry allows us to help different buyers facing a variety of situations find viable solutions. Whether we help you work things out with the resort or qualify you for our services, it’s all the same. You deserve to enjoy your vacations and recipients of donations don’t deserve to deal with a regretful timeshare mistake

For more information on our attorney based process, you can always schedule a free consultation or simply proceed with our eligibility form below.

Failed Timeshare Refund Causes Alabama Man to Hire a Lawyer

Failed Timeshare Refund Causes Alabama Man to Hire a Lawyer

Many aspiring travelers can’t afford luxurious getaways and the timeshare industry speaks to them well. Upon purchase, most are led to believe they’re receiving a bargain. But down the road, they realize it’s not that great of a deal after all. While plenty of vacationers enjoy fractional ownership, it’s not for everyone. The problem is, it’s rather difficult to get out from under timeshare contracts. Will Sims, from Pickens County, Alabama can now attest to this. He’s currently working with an attorney after failing to receive the timeshare refund he was promised.

Sims came across the timeshare opportunity while he and his newly-wedded wife were checking into a Florida hotel prior to sailing off on a cruise for their honeymoon. But he wasn’t necessarily intrigued by the resort’s initial pitch. Matter of fact, Sims wasn’t given much of a choice but to tune into their Pompano Beach timeshare offer. “Before we could go to the hotel, we had to go to a meeting,” he recalled.

How the Timeshare Company Basically Forced the Couple to Buy

Even though the couple was abruptly forced to attend the timeshare presentation, Will and his wife didn’t want to start their trip off with conflict. They figured they’d be able to take a peak and walk away after being courteous. All they wanted to do was check into their hotel and enjoy the waking hours of their marriage. Little did they know that the inconsiderate approach was a sign for what was to come. 

After telling the timeshare salesmen that fractional ownership just wasn’t for them, Sims started to notice the aggressive nature of the sale. The high pressure tactics continued even after he told them he couldn’t afford it. Sims started to realize that the only way he and his wife would get any alone time was if he were to say, “Yes.” What inevitably gave him peace of mind was the salesman’s ploy that he could process a timeshare refund within 10 days. 

The buyer’s right to rescind their contract is a big reason why a majority of new fractional owners give in after long hours at the presentation. In hindsight, Sims now sees that the inconvenience really played to the timeshare’s advantage. Holding people hostage at the start of their vacation is “probably the easiest time for them to make this kind of stuff happen,” he said. “During that time I was more susceptible, I guess, to what happened.”

A Timeshare Refund Wasn’t Given During the Rescission Period.

When their honeymoon was over, Will had a chance to review the contract with family and friends. After minimal thought, he decided to dump the timeshare instead of keeping it. But the rescission process wasn’t anything like the timeshare reps made it out to be. “I tried several times to get a hold of them in that 10-day window and the only people I got a hold of told me that I got to call somebody else back. It was a very painful process,” said Sims. Although he followed the cancellation instructions to a “T,” the timeshare refund failed. 

To date, Sims claims he’s already paid the resort over $12K. Now that he has legal representation, he’s trying to pursue the best course of action. At the same time, you can easily see he’s on the verge of paying his Lawyer a lot more money for no resolve. Instead of simply terminating the agreement, he’s set on making the timeshare company pay for his inconvenience. “I’d like to see me being the last one that this ever happens to,” Sims said.

Scams Are Overwhelming in the Timeshare Relief Market.

Unfortunately, Mr. Sims is not the first and he won’t be the last. If you find yourself chasing a timeshare refund, hiring a reputable exit company to guide you is your best best. Attorneys and inexperienced relief programs typically only add to the damage control. If you’d like to learn more about our attorney based process, you can always schedule a free consultation or proceed with the qualification form below.

Should You File Bankruptcy to Eliminate Timeshare Debt?

Should You File Bankruptcy to Eliminate Timeshare Debt?

For the most part, timeshare ownership is believed to be a cost-saving, enjoyable purchase that’s fruitful year after year. Nobody signing the dotted line expects anything less. While a satisfactory experience does play out for some buyers, the exact opposite occurs for others. When disgruntled owners give us a call to talk about their regret, a common question they ask is if they should file bankruptcy to eliminate timeshare debt. While we believe this is an irrational take, we have to understand why they’re willing to take such desperate measures to get out of a timeshare agreement.

How would you feel if you thought you bought a $20,000 timeshare then later found out at the time of the mortgage maturity it was actually going to cost $55,000 due to annual fees, interest and taxes? What would you say after realizing your annual payment obligations continued for life, even after you paid off the timeshare mortgage? How would you feel if you couldn’t book your desired location, time or even something comparable to what you thought you were paying for? Let’s just say emotions run pretty high once buyers recognize the ploys. What makes matters worse is the simple fact that a majority of solutions are meant to keep timeshare owners trapped in their contract. 

Once they make a decision to pursue some form of relief, they’re commonly ripped off by 3rd party agencies that prey on their vulnerable state. Whether or not they’ve attempted to sell the property or legally get out of the timeshare contract, failed attempts to escape fractional ownership can create uncertainty – which may create even more vulnerability. When owners become driven by their emotions, they become even more susceptible to scams that specialize in deceit.

deceitful-salesman-impersonating-relief-company-in-this-instance-and-a-disgruntled-owner-instead-of-voc

We Want to Help Fractional Owners Avoid Bankruptcy.

Aside from a number of devastating financial blows, these real-life experiences cause some timeshare owners to believe extreme measures are necessary. Because of what they’ve been through and all of the relief scams that flood the market, timeshare cancellation is rarely viewed as the logical solution. But it most certainly is. They just have to put the time in to find a company that actually knows how to get out of timeshare contracts and cares about their quality of life. This starts with an ability to identify scams and unfavorable outcomes, like bankruptcy.

Knowing that some fractional owners file for bankruptcy with the hopes of escaping the clutches of timeshare ownership is disheartening. Consumers should never have to think about taking such a blow just to eliminate their sense of hopelessness. But you can’t really blame them. Even though most owners aren’t interested in legally canceling their agreement, we want to help them understand why they shouldn’t file bankruptcy to eliminate timeshare debt. 

If we can reach one person on the verge of making a life-altering decision, it’ll be worth it.

woman-with-husband-calculating-finances-and-realizing-timeshare-isn't-worth-their-money

Is Filing Bankruptcy Over a Timeshare Worth it?

When a fractional owner starts throwing around the term “bankruptcy,” it’s pretty obvious they’ve gotten in over their head. It’s not something that’s commonly brought up in the timeshare industry until threats of a foreclosure are involved. Based on the conversations we’ve had, financial hardship is rarely the reasoning. It’s the feeling of entrapment and mistrust that provokes their desperation to get out from under the timeshare constraint.

Many don’t even know if they would qualify to wipe out the existing debt of the purchase. They simply want to stick it to the resort. While speaking to a lawyer about the legal process could be helpful, expecting a legal teams to consider your best interest is risky. If timeshare owners were to take the time to really think about the decision, would they really file bankruptcy to eliminate timeshare debt? Are they willing to deal with possible embarrassment and endure purchase limitations for the next 7-10 years?

middke-aged-woman-on-bench-with-luggage-awaiting-flight-while-realizing-timeshare-bankruptcy-isnt-advantageous

Most people wouldn’t deem this a viable solution if they knew the facts surrounding a quality timeshare exit strategy. This is why it’s so important that you speak to legal counsel with experience with timesharing. Our timeshare cancellation services aren’t temporary fixes, we use an attorney based process that actually terminates your future obligations. It’s important to understand that bankruptcy could potentially be a temporary fix as it only eliminates past debt, not future debt. After speaking with a few of our contracted attorneys, we’ve compiled some additional reasons why it’s a bad idea to file bankruptcy to eliminate timeshare debt.

Real Attorneys with Real Outcomes for Timeshare Bankruptcy

Diving off the deep end before you know how to swim or what’s in the water is a bad idea. Educating yourself on the actualities of filing for bankruptcy is an important step that should be completed before consideration presumes. There’s no need to waste time on the pursuit of a bankruptcy claim if it’s clearly unrewarding. With that being said, here are some questions our partners wanted timeshare owners to chew on:

  • Do you want to accept the risk of having an inability to obtain a loan for the next 7-10 years because you filed for bankruptcy? Your ability to finance a home, motor vehicle or even a computer can be hindered due to this decision. If you’re willing to endure anything to get rid of a timeshare then there’s no reason cancellation methods should be out of the question. If you’re being stubborn due to an unfortunate encounter with an ineffective exit team, then ask yourself if protecting your pride and limiting your credit is more important than moving on for good.
  • Does your income even allow you to file for Chapter 7 Bankruptcy? A lot of time and money can be wasted on a claim if you’re not even sure you can wipe out the timeshare purchase. By proceeding with the process uninformed, you may find out that you only qualify for Chapter 13 Bankruptcy. This requires you to pay all or a partial amount of the debt over the next 3-5 years. Undesirable results can be the result if stubbornness is involved.
  • If you decide to proceed with a Chapter 7 filing and you don’t have a structured payment plan such as Chapter 13, will any of your assets be at risk? While you might successfully file bankruptcy to eliminate timeshare debt, your failure to make payments can be rather detrimental. Is there a chance you could lose your home with equity? If so, is this worth the risk to you?

Escaping a timeshare contract with a bankruptcy claim may seem advantageous to you, but it’s not as simple as you might think. While many people use bankruptcy as a way to start over, their decision usually surrounds a large failed business investment. Most people in this position aren’t left with much of a choice. Hitting the financial reset button because you feel trapped in your timeshare and are determined to get out is never a good enough reason. Especially when there are professional companies out there that truly care about helping you move on with your life.

older-couple-walking-on-beach-in-distance-glad-they-got-out-of-their-timeshare-contract-instead-of-filing-bankruptcy

Our Contracted Attorneys Have Additional Timeshare Advice.

While the above questions should really help you determine if you should file bankruptcy to eliminate timeshare debt, our legal partners mentioned a few more things you need to know. 

  • Filing bankruptcy does allow you to wipe out old debt with the timeshare company, but you’re still responsible for future contractual obligations. In other words, your future debt will not be discharged and you may be required to pay for annual maintenance fees, taxes and other special assessments that accrue.
  • Timeshare bankruptcies will stop collection attempts and the harassment from the resort for old debt, however we provide an alternative option that inevitably blocks your timeshare company as well as third parties. Terminating the contract with a timeshare cancellation company like ours allows you to cease and desist communication while eliminating future obligations.
  • While bankruptcy may solve your current problems, there is a chance your heirs may run into inconveniences. Again, since the contract is perpetual (forever binding), it’s hard to tell who the timeshare company will come after for their losses.

stern-looking-middle-aged-woman-acting-as-aggressive-timeshare-company-representative-pursuing-new-debt-from-timeshare-bankruptcy

Eliminating Timeshare Debt Doesn’t Have to be Complicated.

At VOC, we take pride in offering professional services that consider the owner’s experience leading up to their decision to contact us. Unlike most exit companies in the timeshare industry, we make sure potential clients don’t feel pressured to get rid of timeshares. There are always additional ways to try to work things out with the resort.

If you feel as though you’ve tried everything and you’re ready to cancel your timeshare, we’d be more than happy to offer you a free consultation. In the meantime, we hope this article helped you understand why you should never file bankruptcy to eliminate timeshare debt. In the end, terminating the agreement for good will inevitably help you move on.

By using our site you agree to the following Terms of Service.