Could not answer this can yall?

[ahenry1957]

I have been away enjoying everything I have learned here! Have a friend that bought resale yes I told him how). He is in the process of filing bankruptcy. Wants to include his 3 contracts. Now for the part I can tell him how it would work. He wants to buy a low points contract under his wife's name, use her fathers address use her bank account, he is not listed, thus getting a new RCI account and being able to use extended vacations and the fast getaways. Is he right? Any advice? His contracts are the type that sell for nothing on ebay and closing cost were paid by the seller. PLEASE HELP!!!!

 

[DeniseM]

How can someone who is declaring bankruptcy be thinking about buying more timeshares - that is appalling. Personally, I would not advise him at all. YMMV

 

[Ty1on]

My personal opinion is that he should be talking to his attorney, not you or anyone here. If I were filing bankruptcy, fenagling a way to stay with RCI wouldn't be on the top of my priorities list.

I will say that if my wife were filing bankruptcy, the last thing I would do is let her put another financial commitment in my name.

 

[ahenry1957]

I agree the timeshare is not the reason for the bankruptcy. He has major medical bills, had to take a lot lower paying job, told me his only high point was when the could get away and relax at a resort. I am not going to judge just trying to help advise him so he could do what he wants IF he can

 

[Ty1on]

I agree the timeshare is not the reason for the bankruptcy. He has major medical bills, had to take a lot lower paying job, told me his only high point was when the could get away and relax at a resort. I am not going to judge just trying to help advise him so he could do what he wants IF he can

Has he called Wyndham's Ovation line to find out if any of the contracts he owns can be returned to Wyndham?

 

[ahenry1957]

I am sure that they are NOT the first people to do this. and wont be the last. I am trying to just get info for him. I have advised that either a reaffirm the wyndham debt or walk away now then buy later when he is in better shape. Thats when he told me that his attorney told him that wyndham did not have to allow him to purchase again after the bankruptcy. Thats why he is wanting to do this now.....

 

[DeniseM]

This is the deal: when someone defaults on a timeshare, someone has to cover the cost. It's not Wyndham - it's other owners who pay higher maintenance fees. So we are not fond of these kinds of schemes...

 

[ronparise]

First of all i understand what the guy is trying to do, Life goes on through a bankruptcy, including vacations.
But
Instead of buying something else now, why not just rent from another owner, until the process is over, He may find that renting works fine for him and continue doing it, or he my want to pursue the strategy of buying a week somewhere with low mf and maintaining a RCI account for the last calls and rental opportunities>

Speaking as someone that has had an insiders view of how bankruptcy works, I wouldnt take on a new obligation as I entered the process.

 

[alexadeparis]

So the bottom line answer on how timeshares are treated in bankruptcy is:
1) If he owes money on the timeshare it can be surrendered in bankruptcy.
2) If it is paid off and dues are current, the timeshare will still be his unless the trustee wants to sell it as an asset (which isn't likely if they are the $1 kind).
3) If he has paid the loan but is behind on the MF and wants to get rid of it, he can ask after the bankruptcy if the developer will do a deed in lieu of foreclosure, or if not, they will have to foreclose.
4) He can keep it, if paid off (and if worthless) even if behind on the MF; if he plans to catch up on the MF after the Bankruptcy.

So if these are resales where nothing is past due and no loan is owed, they will pass through the bankruptcy if he can show he paid little to nothing for them, no new timeshares needed.

Just in case I misunderstood and he has some sort of loan, If he is dead set on remaining in Wyndham, he can buy one resale prior to the bankruptcy jointly held with someone else that is NOT going to file bankruptcy. Then he could surrender the ones that he wants to in the bankruptcy. But I think to work, it has to be in his name prior to the bankruptcy. And of course must be disclosed on the case.

But I agree that Ron's suggestion to rent for a while or buy a non Wyndham with RCI access may be the best bet and that can be done afterwards. I have had many clients who wanted to keep their timeshare in a bankruptcy and then I show them EBay while we are sitting in my office and explain they can buy one afterwards for less than the cost of lunch, they don't have to keep the one they have now.

 

[raygo123]

Seems like all these answers are based on the premise that he is the only name on the TSs. Is he?

Sent from my Nexus 7 using Tapatalk

 

[LLW]

I am sure that they are NOT the first people to do this. and wont be the last. I am trying to just get info for him. I have advised that either a reaffirm the wyndham debt or walk away now then buy later when he is in better shape. Thats when he told me that his attorney told him that wyndham did not have to allow him to purchase again after the bankruptcy. Thats why he is wanting to do this now.....

Timeshares may often be rented for less than Maintenance Fees. A lot of owners are selling their timeshares and will be renting. Wyndham not allowing him to buy after bankruptcy (if true, but doubtful) may be doing him a favor. A commitment to pay MF forever is unwise for someone encountering financial difficulty, for the long term, and something that a friend should advise against.

He should be spending his free time looking for a higher-paying job (or finding a second part-time job), helping achieve a lower household budget, etc., instead of looking at timeshares for sale. He may think that he should buy because he's able to for next to nothing. But a knowledgeable friend would tell him timeshares are not free to own, even though they may be easy to buy.