Timeshare harassment 4 years after discharge?

[doublestop1]

Hi all! I was discharged from Chap 7 back in August of 2012 but just recently received a letter from an attorney in Nevada named Grant Wolf indicating that I still owe back dues on a timeshare that I surrendered as part of my filing. My attorney confirmed that I did indeed surrender it. I haven't heard a thing from these people since before I filed. Now all of the sudden they are offering me the chance to "settle" my back dues, claiming that I still legally own the week. They have offered to settle for $850, otherwise they say they will proceed with foreclosure and ding my credit -- the very credit that I have very successfully been improving since my discharge four years ago! They included a letter that appears to be from the resort (although it's a copy) that basically summarizes what the attorney is outlining. It also clearly says that it's legit (with an email address for the resort) and NOT an effort to collect a debt -- which is, needless to say, kind of ambiguous. Has anyone else every dealt with anything like this? I'm trying to figure out how to respond. Many thanks!

[bcohen]

I would respond with a copy of the discharge order, and a letter informing this collections attorney that you have surrendered the timeshare through bankruptcy, and do not need or want it anymore. I would also mention the fact that if it is necessary for the resort to foreclose on the timeshare in order to resell it, that is fine, however the bankruptcy discharge injunction prohibits reporting any negative information to the credit bureaus.

[doublestop1]

Thanks for your detailed response! This was helpful, although this attorney representing the resort is claiming that bankruptcy (attorneys and/or the court) are not responsible for transferring ownership as part of a case. Even though my attorney has repeatedly said he can't help me and that based on his opinion, the property was treated as a surrender during my case. I'm not sure what to do at this point or what kind of attorney to hire on my behalf. The resort is saying if I don't pay this fee, they will foreclose on me and it will be in the public records. Very frustrating.

[bcohen]

Yes, the resort can foreclose, but no, they cannot report anything negative to the credit bureaus. This is similar to the situation of someone surrendering their home in bankruptcy. The mere act of choosing "surrender" on the Statement of Intentions does not terminate the debtor's ownership of the house, nor their right to occupy said house. The mortgage lienholder must still complete foreclosure in order to transfer the deed out of the debtor's name, and obtain clear title to resell it. For credit reporting purposes, a discharged mortgage must show $0 balance owing, and the lender cannot report a foreclosure which takes place after discharge.

My advice remains the same. Politely inform the resort's attorney that you do not want the timeshare, and that they are free to take whatever legal steps are necessary to transfer title out of your name--including placing a lien on it for back dues, and foreclosing said lien. Although HOAs have special protection in bankruptcy, resorts do not. They cannot come after you legally for any money, and you should not agree to pay them anything. The foreclosure should not appear on your credit reports.

[doublestop1]

This is great info. Thanks so much. It might be an HOA...that I'm not sure. And fortunately there's no lender. I own it outright so it would be the resort actually foreclosing to take it back into their inventory. I guess they are offering the $870 in lieu of whatever back dues I must owe. And they are pitching this plan as an alternative to them just foreclosing at their own expense....with the threat of the foreclosure going into public record if I don't agree to the $870 title change they are proposing.

The attorney told me that most places just foreclose automatically...but that these guys are offering this one time $870 fee to just transfer title with no negative impact to ones credit report. It must be their way of trying to recoup back dues. My fear is not being able to get it removed from my credit report if indeed they make good on that threat.