Posted on: 27th Jun, 2009 08:00 pm
I live in PA and my wife and I are planning on filing chapter 13 for credit card debt. will we be able to keep our time share? The payments are current.
chapter 13 bankruptcy helps you to restructure your debt payments and get current on your loans. unlike chapter 7, it has a positive impact on your credit as because youre trying to repay debts from your income. however, prior to filing make sure youre well aware as to how it can best suit your purpose.
the pros and cons of filing chapter 13 are given below.
pros:
* pay back debts: you can repay debts through lower payments.
* stops legal action: you are protected from collections, judgments, foreclosure etc.
* retain assets: real and personal property can be retained.
* additional debts discharged: debts nondischargeable in chapter 7 can be discharged in chapter 13. such debts include those for willful and malicious injury to property, debts due to property settlement in divorce or separation and those incurred to pay nondischargeable tax liability.
* protect cosigner: cosigners on credit cards, payday loans and other consumer debts are protected as per chapter 13 rules.
* tax deduction: you can get tax deduction for property taxes and mortgage interest you pay as part of chapter 13 plan.
cons:
* tax liens: since chapter 13 rules require you to pay secured debt in full and tax lien is a secured debt, therefore, your payments will be higher if you have tax debt.
* dismissal: if you stop making payments under chapter 13 plan, the court can dismiss your case or convert it into chapter 7. your case can also be dismissed if you don't pay post-filing obligations such as alimony, child support or taxes etc. know more on chapter 13 dismissal.
* new credit: you cannot take out new credit and incur debt without court approval.
the pros and cons of filing chapter 13 are given below.
pros:
* pay back debts: you can repay debts through lower payments.
* stops legal action: you are protected from collections, judgments, foreclosure etc.
* retain assets: real and personal property can be retained.
* additional debts discharged: debts nondischargeable in chapter 7 can be discharged in chapter 13. such debts include those for willful and malicious injury to property, debts due to property settlement in divorce or separation and those incurred to pay nondischargeable tax liability.
* protect cosigner: cosigners on credit cards, payday loans and other consumer debts are protected as per chapter 13 rules.
* tax deduction: you can get tax deduction for property taxes and mortgage interest you pay as part of chapter 13 plan.
cons:
* tax liens: since chapter 13 rules require you to pay secured debt in full and tax lien is a secured debt, therefore, your payments will be higher if you have tax debt.
* dismissal: if you stop making payments under chapter 13 plan, the court can dismiss your case or convert it into chapter 7. your case can also be dismissed if you don't pay post-filing obligations such as alimony, child support or taxes etc. know more on chapter 13 dismissal.
* new credit: you cannot take out new credit and incur debt without court approval.
Hi jacejonesjr!
Welcome to forums!
In my opinion, you'll be able to save your timeshare. As you are filing Chapter 13 bankruptcy to get rid of your credit card debts, do not include your timeshare in bankruptcy. In case, you include it in your bankruptcy, the lender will give you a repayment plan through which you will be able to pay off the dues within 3-5 years and also save your property. However, consult a bankruptcy attorney. He will be the best person to help you in this regard.
Feel free to ask if you have further queries.
Sussane
Welcome to forums!
In my opinion, you'll be able to save your timeshare. As you are filing Chapter 13 bankruptcy to get rid of your credit card debts, do not include your timeshare in bankruptcy. In case, you include it in your bankruptcy, the lender will give you a repayment plan through which you will be able to pay off the dues within 3-5 years and also save your property. However, consult a bankruptcy attorney. He will be the best person to help you in this regard.
Feel free to ask if you have further queries.
Sussane
My husband and I filed bankruptcy last week. We have our final court date in a few weeks. My atty: told us we had to include our time share. We would like to keep our timeshare. The monthly payment is autom. deducted from our checking account So can we keep and still use our time Share?
hi j.johnson,
chapter 13 bankruptcy also helps in reorganization of debts. though you include the timeshare in your bankruptcy filing, you would still be able to save the property as you would receive a payment plan from the lender to pay off the dues.
chapter 13 bankruptcy also helps in reorganization of debts. though you include the timeshare in your bankruptcy filing, you would still be able to save the property as you would receive a payment plan from the lender to pay off the dues.
It depends on if your unsecured creditors receive less then 100% of what's owed them. The timeshare is a luxury, and your unsecured creditors will receive less if you retain the timeshare, which isn't fair to them. You'll only be allowed to retain the timeshare if your chapter 13 payment plan provides all your other creditors with 100% of what's owed.
what i don't get, J. Johnson, is why your attorney didn't give you a clue about your desire to retain the timeshare. did you bring it up in your original discussions?
because of medical bills I'm considering bankruptcy .how do i keep my timeshare ,if it's already paid for?
Not with a chapter 7, but you might be able to with a chapter 13, if you do a 100% program (that means all creditors, secured and unsecured, are paid back 100% of whats owed them via your chapter 13 program).
First of all, why do people on these self-help forums answer other people's questions by saying "consult an attorney"? Isn't the whole purpose of posting the question in the first place to find out the answer without having to go to an attorney (or at least have an attorney post the answer for free here).
To reply to one response above, it is not true that a Chapter 7 will negatively affect your credit. In fact, I would say that in approximately 500 of the Chapter 7 cases I have filed, filing the BK actually SIGNIFICANTLY IMPROVED people's credit scores. Typical the Chapter 7 would increase someone's credit score on average by over 100 points in a 12 month period. Of course this is on a case by case basis (I have seen over 150 point increase within 12 months), but I am giving an overall figure.
To reply to one response above, it is not true that a Chapter 7 will negatively affect your credit. In fact, I would say that in approximately 500 of the Chapter 7 cases I have filed, filing the BK actually SIGNIFICANTLY IMPROVED people's credit scores. Typical the Chapter 7 would increase someone's credit score on average by over 100 points in a 12 month period. Of course this is on a case by case basis (I have seen over 150 point increase within 12 months), but I am giving an overall figure.
>>why do people on these self-help forums answer other people's questions by saying "consult an attorney"?
Because many of the questions deserve that level of expertise.
>>Isn't the whole purpose of posting the question in the first place to find out the answer without having to go to an attorney
No. Most of us are Laymen and although experienced in several subjects, are not educated experts, as with Attorney's. I'll refer somebody to an Attorney when I feel their situation requires that level of expertise.
>>(or at least have an attorney post the answer for free here)
That'd be wonderful. Would you please ask your Attorney friends to come here and reply to some questions.
>>it is not true that a Chapter 7 will negatively affect your credit. In fact, I would say that in approximately 500 of the Chapter 7 cases I have filed, filing the BK actually SIGNIFICANTLY IMPROVED people's credit scores.
I strongly disagree. I too have worked with hundreds of people who have filed bankruptcy, and their FICO scores suffered accordingly.
>>Typical the Chapter 7 would increase someone's credit score on average by over 100 points in a 12 month period. Of course this is on a case by case basis (I have seen over 150 point increase within 12 months), but I am giving an overall figure.
I agree and have seen the same. The score initially plummets but can be returned to an acceptable level within the following 12-24 months (with a lot of effort on the debtors part - it doesn't occur naturally). Take me for example - I did a chapter 7 immediately followed by a chapter 13 and my FICO was 685 23 months into my chapter 13. But I've seen hundreds of other debtors who were in the 400-500 range two years after their discharge ... I estimate 95% of the debtors I've worked with are like that. It's wonderful when I've been able to find, and help, the other 5%.
Because many of the questions deserve that level of expertise.
>>Isn't the whole purpose of posting the question in the first place to find out the answer without having to go to an attorney
No. Most of us are Laymen and although experienced in several subjects, are not educated experts, as with Attorney's. I'll refer somebody to an Attorney when I feel their situation requires that level of expertise.
>>(or at least have an attorney post the answer for free here)
That'd be wonderful. Would you please ask your Attorney friends to come here and reply to some questions.
>>it is not true that a Chapter 7 will negatively affect your credit. In fact, I would say that in approximately 500 of the Chapter 7 cases I have filed, filing the BK actually SIGNIFICANTLY IMPROVED people's credit scores.
I strongly disagree. I too have worked with hundreds of people who have filed bankruptcy, and their FICO scores suffered accordingly.
>>Typical the Chapter 7 would increase someone's credit score on average by over 100 points in a 12 month period. Of course this is on a case by case basis (I have seen over 150 point increase within 12 months), but I am giving an overall figure.
I agree and have seen the same. The score initially plummets but can be returned to an acceptable level within the following 12-24 months (with a lot of effort on the debtors part - it doesn't occur naturally). Take me for example - I did a chapter 7 immediately followed by a chapter 13 and my FICO was 685 23 months into my chapter 13. But I've seen hundreds of other debtors who were in the 400-500 range two years after their discharge ... I estimate 95% of the debtors I've worked with are like that. It's wonderful when I've been able to find, and help, the other 5%.
wonderful response, raymond - i thoroughly agree that we all ought to get our attorney friends to come on here and post their professional legal opinions for free. yet at the same time, i see how cautious Joshua Heard, one of our Moderators is when he posts - his posts all include a disclaimer. i think that's wise, in any event.
legal opinions which might get posted here would be based purely on the particular scenario provided by our poster. none of us know the truth of the matter in each of these cases, nor are we hearing the other side of the story.
and if people could "find out the answer without having to go to an attorney" then we could weed out all the attorneys, right?
it's always entertaining, that's for sure.
legal opinions which might get posted here would be based purely on the particular scenario provided by our poster. none of us know the truth of the matter in each of these cases, nor are we hearing the other side of the story.
and if people could "find out the answer without having to go to an attorney" then we could weed out all the attorneys, right?
it's always entertaining, that's for sure.
I received a Notice of entry of order approving disclosure statement, ETC.
My Resorts Company is filing for Bankruptcy.
What happens to Timeshares that are fully paid-off like mine?
[Email address deleted as per forum rules. Thanks.]
My Resorts Company is filing for Bankruptcy.
What happens to Timeshares that are fully paid-off like mine?
[Email address deleted as per forum rules. Thanks.]
Hi Lara,
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/bankruptcy/timeshare-paidoff.html
Take a look at it. I hope it'll help you.
A query similar to yours has been answered in the given page:
http://www.mortgagefit.com/bankruptcy/timeshare-paidoff.html
Take a look at it. I hope it'll help you.
Whoever said "don't list it in the bankruptcy" above is providing very dangerous advice.
The internet is fraught with danger, acory, which makes it no surprise that we find advice of that sort here as well as elsewhere.