Buying into a timeshare can seem like a sensible and affordable way to vacation with friends and family. But what happens if your finances tighten and your timeshare costs are no longer within your budget?
With a contractual obligation to pay for the shared property, cancelling a timeshare agreement is not as simple as making a few phone calls. Once the salesperson succeeds in convincing a buyer to obtain a timeshare, it is in the operator’s interest to keep the buyer on board as long as possible.
If you entered into a financing arrangement to acquire the timeshare, your contract would require that regular payments be made to the bank or loan provider. Similarly, a buyer might be required to pay recurring fees for property maintenance and for access to amenities.
However, if you can no longer afford to make the required payments, it might be possible to negotiate a settlement for a release of further obligations with the timeshare in exchange for payment. If you are able to successfully settle your timeshare debt, you can potentially avoid serious collection activity such as a lawsuit to collect the arrears or even a foreclosure action. If you want to learn more about breaking your timeshare contract due to financial hardship, contact our debt relief firm today.
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Step #1: Check Your Timeshare Contract
Whether you’ve just purchased your timeshare and you’ve decided it wasn’t the best idea financially, or you’ve had the timeshare for a few years, the first thing you will want to do is check your contract. If you are still within the cancellation period for the timeshare, you may be able to cancel your contract rather simply.
Unfortunately, the cancellation period for your timeshare is probably short and if you’ve had your contract for a while, you probably are not within the designated timeframe. In this case, you will probably need to seek alternative debt relief options.
In some situations, timeshare debts can be reduced through strategic negotiations. Although the timeshare creditor may reserve the right to bring a lawsuit, sometimes they’d rather get what they can outside of court. Our New York attorneys can help you understand your rights and can evaluate your file to determine viability for settlement negotiations.
Modifying Your Timeshare Contract
Some creditors may be willing to temporarily, or permanently, modify the terms of the agreement to allow for a more affordable payment arrangement. A timeshare work-out might be approved based on documented financial hardship and other factors. These decisions are made at the discretion of the creditor, as such, there is no requirement to offer a timeshare modification.
Modifying your timeshare agreement can be an attractive choice if you are seeking to keep use of the timeshare, but need a break on the payments.
Cancelling Your Timeshare Through Bankruptcy
One way to cancel your timeshare is through filing for bankruptcy. While this is not necessarily recommended unless filing for bankruptcy is otherwise necessary, either Chapter 7 or Chapter 13 may allow you to discharge your remaining debt after a foreclosure. On the other hand, if you are just looking for a way to get out of your timeshare commitment, it’s important to meet with a lawyer to understand whether you qualify for bankruptcy and whether it is the best option.
If the bank has yet to foreclose, filing for Chapter 7 or Chapter 13 bankruptcy might help you express an intention to abandon the timeshare property. This can help you to discharge past maintenance fees and potentially the remaining balance on your mortgage for the property. If you choose to file Chapter 13 bankruptcy, you will still be required to make payments on the loan during your repayment plan time period, which can last between three and five years.
Get Help from our dedicated Debt Relief Advocates
The contract you enter into with your timeshare is not the same as other types of property, making it more complicated than simply letting go of a vacation property you can no longer afford.
The experience debt relief team at the Law Office of Simon Goldenberg, PLLC, can walk you through your options and help you find a way to let go of your timeshare’s burden. Contact our dedicated debt relief team for a free evaluation and to learn what we can do to help.
Seeking options to get out of your timeshare? Contact us at (888) 301-0584 to schedule your free evaluation.