Can Someone Clarify My Doubt?

LivN · #1 (**permalink**) August 16th, 2009, 03:49 AM

Folks,
I have a doubt. I was talking to my friend the other day about global economy, large companies going bankrupt, etc. and suddenly a question popped in my mind.

What happens to the fee that we pay if the timeshare developer files for bankruptcy? Is it gone? Or is there any other way we could get our money back?

I'm not trying to sound paranoid or anything. Just that I've been thinking about this question a lot of late. Your inputs are welcome.

TAI_Staff · #2 (**permalink**) August 17th, 2009, 02:51 PM

Quote:

Originally Posted by LivN

Folks,
I have a doubt. I was talking to my friend the other day about global economy, large companies going bankrupt, etc. and suddenly a question popped in my mind.

What happens to the fee that we pay if the timeshare developer files for bankruptcy? Is it gone? Or is there any other way we could get our money back?

I'm not trying to sound paranoid or anything. Just that I've been thinking about this question a lot of late. Your inputs are welcome.

Bankruptcy is most simply defined as a legally declared inability or impairment of ability of an individual or organization to pay its creditors, so from what I gather-even if the timeshare company has filed for bankruptcy, payments on timeshares still need to be made as normal.

CaMama · #3 (**permalink**) August 18th, 2009, 04:12 PM

Recently Consolidated Resorts in Las Vegas filed for Chapter 11 bankruptcy. Mark Silverman of the Timeshare Examiner wrote an article with answers to questions about the impact of bankruptcy on the timeshare owner. He said there might be some speedbumps, but owners will be okay. One possible scenario would be that lack of staffing allows reservations for floating weeks to fall behind. If your resort has too many timeshares which are unsold and no fees are coming in, that could cause an increase in those fees and/or a special assessment.
Basically, the resorts' homeowners associations (HOA) that have at least 80%of their timeshares sold are more than stable and able to continue to support their operations as owners are used to.
There are rights and priveleges built into your CC&R (Covenants, Conditions & Restrictions)...a document one receives at time of their timeshare purchase. If your HOA does not have enough timeshares sold, then it likely will be acquired by another developer.
So far, it seems that the timeshare resorts owned by Consolidated Resorts are functioning. Rest easy LivN and know that your fees continue keeping your timeshare and resort up to the standards you expect.

sadmemories20 · #4 (**permalink**) April 26th, 2011, 06:19 AM

He said there might be some speedbumps, but owners will be okay. One possible scenario would be that lack of staffing allows reservations for floating weeks to fall behind. If your resort has too many timeshares which are unsold and no fees are coming in, that could cause an increase in those fees and/or a special assessment.