<h2>New Jersey Attorney Details How To Give Back A Timeshare And Eliminate the Debt In A New Jersey Bankruptcy</h2>
There are many people who are very happy with their timeshare purchases. However, there are situations, whereby the enticing and aggressive marketing programs convince people to purchase a timeshare, that results in buyer’s remorse. Typically, a timeshare requires a periodic finance payment, in addition to the ongoing maintenance fees. The maintenance fees appear to be endless. How can someone get rid of the timeshare and the associated finance and maintenance payments. New Jersey Bankruptcy may be your answer.
A New Jersey Chapter 7 bankruptcy will permit a person to surrender their timeshare and completely eliminate and discharge any and all of the debt and the obligation to make any future payments. This means that the time share company will not be permitted to collect any debt that was due prior to the filing and will not be able to bill the debtor for any payments that come due in the future. Typically, under these circumstances, the timeshare company will ask the debtor to sign a document that conveys the property back to the company.
Typically, under all circumstances, the bankruptcy trustee and/or the bankruptcy court will not take the timeshare or require the debtor to sell the property, unless their is substantial value in the property as a bankruptcy asset. Also, “in theory”, a debtor may keep the timeshare, that does not have substantial value, if he is current and keeps current with all required payments. I write, “In theory”, because any debtor that meets the chapter 7 criteria should not and cannot have sufficient income to make payments on a nonessential timeshare.
The debt owed to a timeshare company is considered a secured debt as to the timeshare. A debtor must file a plan that reflects how the time share will be treated. The explanation as to whether a debtor may keep a timeshare in a New Jersey chapter 13 is very similar to keeping a motorcycle that is used solely as a luxury item. Please read my blog regarding how a motorcycle and motorcycle financing is handled in a chapter 13. Generally, if a timeshare is surrendered, the debtor may eliminate and discharge any and all associated required payments and debt. Typically, under this scenario, if the plan if artfully drafted, the debtor will not be required to pay any money, whatsoever, through the trustee payment, to the timeshare company.
You may contact Robert Manchel at 866 503 5644 to discuss your timeshare and NJ. bankruptcy law questions.