What to do if we own a week in a timeshare and they are now filing bankruptcy?

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What to do if we own a week in a timeshare and they are now filing bankruptcy?

We have an excellent credit rating with no debt. Will we be be affected this bankruptcy?They’ve asked us to turn over our deed to them to avoid further costs. Is this normal practice? Is there anything that we can do our do we just lose our investment?

Asked on August 18, 2011 Oklahoma

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 10 years ago | Contributor

There are two very different issues:

1) Will the timeshare's bankruptcy affect your credit rating? No--one person or entity is not affected by the bankruptcy (or default, delinquincy, etc. of another).

2) Should you turn you deed over to them--probably not: if you own a week in a timeshare, that is would seem to be something *you* own, and you don't have to give it them so they can pay *their* creditors. However, that said, you should consult with an attorney, bringing with you *all* paperwork from the time share, so he can review it and the situation with you and advise you as to your rights and your potential recourse as well. Good luck.


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