# timeshare bankruptcy



## moffo5 (Sep 18, 2009)

We bought a timeshare through a resale broker/individual in Arizona for only about $2000 a few years ago. Unknown to us but the resort was being sued  at the time. Subsequently the resort lost in court for million plus and had to declare bankruptcy. We are now stuck with a no value timeshare and doubled yearly fees to pay off the legal judgement. Trying to track down original broker and owner for failure to disclose has not been productive. Did the resort have any obligation to notify of pending legal action since they wer a party to the transaction. Also, does anyone know if an individual timeshare owner's personal assets can be attacked for legal judgements against a resort. In essence, this is what is being done by increasing yearly fees to pay for the judgement. I know these are legal questions but wonder if anybody has any experience or opinion about this.                    Tom


----------



## T_R_Oglodyte (Sep 19, 2009)

moffo5 said:


> We bought a timeshare through a resale broker/individual in Arizona for only about $2000 a few years ago. Unknown to us but the resort was being sued  at the time. Subsequently the resort lost in court for million plus and had to declare bankruptcy. We are now stuck with a no value timeshare and doubled yearly fees to pay off the legal judgement. Trying to track down original broker and owner for failure to disclose has not been productive. Did the resort have any obligation to notify of pending legal action since they wer a party to the transaction. Also, does anyone know if an individual timeshare owner's personal assets can be attacked for legal judgements against a resort. In essence, this is what is being done by increasing yearly fees to pay for the judgement. I know these are legal questions but wonder if anybody has any experience or opinion about this.                    Tom



Just a caution that free legal advice is generally worth what you pay for it.  There is no substitute for consulting with an attorney.  Most Bar Associations have a legal services referral program that allows people to meet with an attorney in the particular field for which expertise is required for about one hour at a greatly reduced fee.


----------



## tompalm (Sep 19, 2009)

_Buying a timeshare a few years ago and it is now worth zero._  That is par for the course.  There are a lot of others in the same boat with you.  The real question is how much longer will you have to pay a higher maintenance fee to make up for the judgement?  If the cost of the attorney is going to be more than the extra maintenance fee, forget it.  Even if you win and get all the fees back, is it worth you time?

I bought and sold a timeshare a few years ago and all the resort did was change the name on the deed.  The one thing I learned was each state has different laws.  You need to consult a real estate attorney that specializes in timeshares in the state that your timeshare is in.


----------



## dougp26364 (Sep 19, 2009)

You'll likely spend more than $2,000 in seeking a judgement that you might not even win.


----------



## Rent_Share (Sep 19, 2009)

dougp26364 said:


> You'll likely spend more than $2,000 in seeking a judgement that you might not even win.


 
Or win and *never* collect


----------



## moffo5 (Sep 19, 2009)

Thanks for your input. I realize the value of the TS would likely be zero even without the bankruptcy. My concern is having to be personaally liable for the legal judgement. I am not sure the duration of the increased fees to pay for it but I believe it was a structured settlement over a number of years. I also am aware the only real option would be to get legal counsel. Thanks.


----------



## Rose Pink (Sep 19, 2009)

I am not a lawyer nor do I play one on TV.  Timeshare owners own the resort, don't they?  You own real property and as the owner you pay the judgement.  ????


----------



## Rent_Share (Sep 19, 2009)

The HOA is the judgement debtor - they pass their costs to the members


----------



## Rose Pink (Sep 19, 2009)

Rent_Share said:


> The HOA is the judgement debtor - they pass their costs to the members


 
Because the members are the HO in the HOA.


----------



## dougp26364 (Sep 19, 2009)

moffo5 said:


> Thanks for your input. I realize the value of the TS would likely be zero even without the bankruptcy. My concern is having to be personaally liable for the legal judgement. I am not sure the duration of the increased fees to pay for it but I believe it was a structured settlement over a number of years. I also am aware the only real option would be to get legal counsel. Thanks.



If you're concerned about future MF's, I'd put it up for sale for $0 or as a $1 bid on E-bay. 

I'm not certain that full disclosure laws are going to apply in timeshare as they might in normal real estate transactions. You're not really buying real estate, you're buying the right to use a property, even if it's deeded. Essentially you don't own anything but the right to use the space within the defined structure for 1 week per year (or every other year or every third year et.....). Thus the need to do due dilligence before making the purchase.


----------

