Timeshare and Bk in Cali

[confusedinca]

I had a question. If anyone can help. We're contemplating filing a bankruptcy in Ca. We own a timeshare and was wondering if this is something you get to keep or have to give up in a bankruptcy? We have to possibly file because out of all things I'm a witness for the prosecution in a gang related case and it has turned our lives upside down and we have to go into a witness protection. We've never been late on anything and we've only had the timeshare for 2 years.

Thanks

[Justpoor]

Interesting story. I wish you the best. I don't know the answer but timeshares aren't easy to sell these days so unless it happens to be a really good one I would think you can keep it. I bought one on St. Pete beach about six months ago on ebay for $1. The annual fee is $400. I figure $400 is still cheap for a week at the beach.

[HHM]

There is no exemption for timeshares of anykind, so in that respect, if it has value, and you don't reconcile the value, the trustee can take it.

Timeshares fall into 2 categories.
1. Deeded Real Estate
2. Right of use.

Generally, BK trustee's have no interest in timeshares because they are hardly worth anything, they are very hard to sell (go look at all the timeshares for sale on ebay). Thus, if the trustee doesn't want it, then all you need to do is keep making the payments. But if the trustee wants it, and you can't exempt the equity with a wildcard exemption, then the timeshare goes to the trustee.

[jribe]

I had a question. If anyone can help. We're contemplating filing a bankruptcy in Ca. We own a timeshare and was wondering if this is something you get to keep or have to give up in a bankruptcy? We have to possibly file because out of all things I'm a witness for the prosecution in a gang related case and it has turned our lives upside down and we have to go into a witness protection. We've never been late on anything and we've only had the timeshare for 2 years.

Thanks

Hi,
I'm in CA too, and also own a time share. We bought it back in 2006; and the maintenance fees are about $800 a year.

We thought about keeping it, because we don't owe too much on it anymore.

But we realized we didn't use it much. It was a great idea- it's deeded property and we can go to any of their other resorts..

But timeshares are worthless! Seriously, there's a large re-sell market- and it's like 25% of what you pay new.

We were going to donate it, but then found out you can't even deduct the whole value.

You can keep the timeshare in CA if you can cover it with your exemptions.
CA has a 20k unused homestead exemption. If you don't own a home, or aren't keeping it- you could use that.

Just make sure you have enough left over to cover other things you want to keep.

In my opinion- if you really like it- let it go. Then find the same one in re-sale for waay less.

That's what we'll do if we decide to get one again...

[zpbk13]

My husband and I own a timeshare in Orlando. I love it, husband, not so much. Our attorney assures us that the trustee does not want it and we should just keep making payments. Right now, with money so tight, I am just trying to decide what is in our best interest. I know the adult thing to do is to let it go while we can but the sentimental side wants to hold on it. I hope you all make the right decision for your family.