Having “an albatross around one’s neck” originated from Samuel Coleridge’s poem The Rime of the Ancient Mariner. An albatross was a sign of bad luck. If you file for bankruptcy, owning a timeshare might be considered an “albatross”.
Timeshares became popular 40 years ago. Timeshares allow the owners to own a percentage of the property and use the property at certain times of the year. Timeshare properties are generally resorts and vacation properties.
To purchase a timeshare, you pay money for ownership that can most often be transferred or sold, and you pay an annual maintenance or HOA fee based on your percentage of ownership.
The timeshare industry has evolved and now allows most owners to trade the timeshare they own with other timeshare owners and visit other destinations throughout the world.
Some timeshares provide you with a deed of ownership, others provide you with other kinds of paperwork where you own only the time, but most have expenses to keep up the property, such as maintenance and Home Owner Association (HOA) fees.
The companies that develop and sale the timeshares will often contract to provide ongoing maintenance for the property to an HOA, or they will maintain ownership of the property and sell you time.
Usually, the cost of maintaining the property rises with inflation. Most timeshare owners have no control over the rising fees unless they belong to the HOA.
According to an online news article published June 5, 2011, timeshares have been extremely hard to resale during the recent recession. Many timeshare owners are offering to give you the timeshare or sale them for $1 just to get out from under the annual fees.
The fees, in many cases, have risen higher per week than what you can now rent a hotel room, and the only way a person can get their money back is to use their timeshare. What if you don’t want to vacation that year? You can try to rent the property or lose money.
What happens if you file for bankruptcy and you own a timeshare? The timeshare has Home Owner Association (HOA) fees and you might not be able to discharge the fees in a bankruptcy filing (depending on your state). Contact a bankruptcy lawyer to find out if your timeshare HOA fees can be discharged by filing for bankruptcy protection.
Many travelers love their timeshares, but in an economic downturn, they can become an albatross. If you need relief from the stress of debt and you live in or around the metropolitan area of Honolulu, Hawaii, contact us at www.betterbankruptcy.com .We will help you find a bankruptcy attorney in your area that will help you with any questions you may have on bankruptcy law who will answer your bankruptcy questions.
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