Important Information About Bankruptcy and Timeshare
Filing for bankruptcy is an unpleasant process to have to go through. It means that your financial situation has become insurmountable, to the point where you can no longer sustain nor cope with financial obligations. It can be dispiriting and upsetting, but it can also mean the opportunity for a fresh start. Dealing with bankruptcy and timeshare release together is a chance to open a new phase in your life, free from the financial burden that timeshare brings.
If you are approaching the realisation that your timeshare is a significant part of the financial burden leading you into filing for bankruptcy, there are some steps that should be taken first. In assessing your financial obligations, it is important to take your timeshare into account. There may be ways to get out of the timeshare, which may help you to alleviate some of the strain that is causing your situation.
Avoiding Bankruptcy and Timeshare Law
Engage a timeshare lawyer to look at your contract. They will be able to cast their professional eye over it to ascertain its legality. It is becoming increasingly apparent in recent years that many timeshare contracts are unlawful, and are often considered null and void in a court of law. Whether your timeshare contract is illegal is not easy to ascertain with the naked eye. It requires an experienced lawyer to be able to spot the parts that they know could lead to a legal case against the timeshare company.
Where a timeshare contract is found to be unlawful in court, it is often the case that, not only will the contract be nullified, but also compensation will be due to the claimant (you). You may stand to have your maintenance fees, legal costs, and any other costs accrued during the period of the contract refunded to you, either in full or in part.
By taking this route, you may be able to avoid bankruptcy and timeshare will no longer be a concern for you. After all, bankruptcy should be considered the last resort, as it will have a detrimental effect on your ability to acquire credit, including a mortgage, for seven years or longer. If there is anything that can be done to avoid bankruptcy, these steps should be taken as a matter of urgency.
Going Ahead With Bankruptcy and Timeshare Implications
All cases of bankruptcy in the UK are handled by an official receiver, who works with the bankrupt person to nullify debts. The official receiver will contact the timeshare company to inform them of the situation and ask for details of any outstanding service charges. These will need to be dealt with by being offset against the proceeds from selling the timeshare.
However, if you are in a situation where you are filing for bankruptcy because you have had financial problems for some time, it is likely that you will have accrued significant arrears on your timeshare maintenance payments. If this is the case, then this will leave very little left after the timeshare has been sold – effectively meaning that selling the timeshare is just not worth it.
You will be asked to present the timeshare contract, as well as a full list of outstanding charges and any paperwork associated with a related finance agreement. The timeshare agreement will then be forwarded to the company who will be dealing with selling the timeshare, which is something that Timeshare.lawyer can help with, providing you with guidance about timeshare resale companies that will be prepared to take on the timeshare.
Whatever path you need to pursue, Timeshare.Lawyer is experienced and knowledgeable enough to be able to guide you through. If timeshare is causing you financial strain, it is important that you contact us directly as soon as possible, as we will be able to help you achieve the best possible outcome. It could be the best decision you ever make.