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timeshare maintenance fee and asset ?

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I am legally bound by the divorce decree with my former spouse. . . The value is anybody's guess, since it is hard to compare to a standard. Certainly it was not worth what we paid for it. I guess my only question would be how is this an asset to be listed , when it is jointly owned together with a former spouse and equally divided between? I would believe the court record of divorce issued with decree, is superior to the asset requirement, simply because it has no recoverable value and is a vacation week split equally between the owners, but I don't know, that's why I ask before I file
You list the asset on Schedule A Real Property. You value it as best you can and you state that you have a 50% interest. Unless there is an exemption that will cover the timeshare your Trustee can attempt to sell the asset. He/she has the right to sell the estate's interest along with the co-owners interest. The co-owner would be entitled to 50% of the net proceeds.

Here is the auction site I was thinking of for on-line bk auctions for timeshares. . .

https://www.bkassets.com/timeshares/

With an additional Ebay link. . .

http://stores.ebay.com/Online-Bankruptcy-Asset-Auctions/Timeshares-/_i.html?_fsub=1190267012&_sid=1674562&_trksid=p4634.c0.m322

If the asset is not covered by an exemption it will be up to the Trustee to decide if it is something he/she wants to market. If he/she is unable to sell the asset it will eventually be abandoned and ownership, as provided for by the divorce decree, will be returned to you.

Tomorrow morning I will go through all of these posts to see if there is something I can add.

Des.
 


Taxing Matters

Overtaxed Member
I would believe the court record of divorce issued with decree, is superior to the asset requirement, simply because it has no recoverable value and is a vacation week split equally between the owners, but I don't know, that's why I ask before I file

thanks
No, its the other way around. Federal law trumps state law where they conflict. Bankruptcy law is federal law and bankruptcy courts are federal courts. The divorce decree, on the other hand, is based on state law and issued by a state court. When you file bankruptcy the requirements of federal bankruptcy law will apply, notwithstanding what your divorce decree says. Bankruptcy law does, however, allow states to set alternate exemptions for bankruptcy and Virginia is one state that has done that. You must use the Virginia exemptions rather than the federal ones. Your half interest in the time share is an asset and you have to list that. Whether you can use Virgina's homestead exemption to cover that is something you really need to discuss with your bankruptcy lawyer. Note that if you choose to do that you must record the homestead prior to filing the bankruptcy petition. Ask your attorney about that, too.
 

Taxing Matters

Overtaxed Member
The good thing is that most judges are going to realize that timeshares aren't really assets as they have little to no resale value.
What the judge thinks of the value is not what matters. What matters is what the trustee thinks of it. If the trustee thinks it has some value, at least enough to get something more than the expenses of sale, the trustee is free to try to sell it to recover money for the creditors (assuming it is not covered by some exemption, of course). And some time shares do sell for something more than a pittance. They might not sell for what the debtor paid for it, but what the debtor paid for it isn’t something the trustee cares about. The focus is what the trustee can get for it.
 

kolabok

Member
You list the asset on Schedule A Real Property. You value it as best you can and you state that you have a 50% interest. Unless there is an exemption that will cover the timeshare your Trustee can attempt to sell the asset. He/she has the right to sell the estate's interest along with the co-owners interest. The co-owner would be entitled to 50% of the net proceeds.

Here is the auction site I was thinking of for on-line bk auctions for timeshares. . .

https://www.bkassets.com/timeshares/

With an additional Ebay link. . .

http://stores.ebay.com/Online-Bankruptcy-Asset-Auctions/Timeshares-/_i.html?_fsub=1190267012&_sid=1674562&_trksid=p4634.c0.m322

If the asset is not covered by an exemption it will be up to the Trustee to decide if it is something he/she wants to market. If he/she is unable to sell the asset it will eventually be abandoned and ownership, as provided for by the divorce decree, will be returned to you.

Tomorrow morning I will go through all of these posts to see if there is something I can add.

Des.
thank you very much!

One thing I gleaned from this is, we were always looking to get rid of the timeshare but never could get fair value of any sort. Now with a trustee, they can do the selling. I might not get anything, but the former spouse would, that's not bad actually,
 

kolabok

Member
No, its the other way around. Federal law trumps state law where they conflict. Bankruptcy law is federal law and bankruptcy courts are federal courts. The divorce decree, on the other hand, is based on state law and issued by a state court. When you file bankruptcy the requirements of federal bankruptcy law will apply, notwithstanding what your divorce decree says. Bankruptcy law does, however, allow states to set alternate exemptions for bankruptcy and Virginia is one state that has done that. You must use the Virginia exemptions rather than the federal ones. Your half interest in the time share is an asset and you have to list that. Whether you can use Virgina's homestead exemption to cover that is something you really need to discuss with your bankruptcy lawyer. Note that if you choose to do that you must record the homestead prior to filing the bankruptcy petition. Ask your attorney about that, too.
I see the point being made, however the confusion of what exactly is a timeshare specifically in VA, is to my understanding deeded real property, albeit for one week out of the entire year and is tangible property to be recovered. But the divorce decree as rubber stamped by the judge also includes elements of federal law, in this instance, a QDRO, a baby of the IRS. This is a moot point with the bankruptcy in general. The more important question to ask, can this be exempted under VA bankruptcy law. If it is allowed under the exemption then 5000 would be the limit and double that if married. From my gleaning timeshare lore, getting a fair market value is rare. It is location that drives the value. If VA Beach is such a place then we should be blessed, however what was paid for, i think 42k week 30 Oceanside view, was a bit much as attempted to thwart my e-wife idea of saving money vs. losing money.

I'm not a lawyer by any stretch, but i have jumped in hands and feet to figure out the lunatic fringe that so often comes from interpretation of law. If there were any case laws to review that could be a starting point, but I know not. I think the exemption rule may trump here, but if this is confusing for main stream America, what can be said of attorneys in VA whose understanding may lack lucidity?
 

kolabok

Member
You list the asset on Schedule A Real Property. You value it as best you can and you state that you have a 50% interest. Unless there is an exemption that will cover the timeshare your Trustee can attempt to sell the asset. He/she has the right to sell the estate's interest along with the co-owners interest. The co-owner would be entitled to 50% of the net proceeds.

Here is the auction site I was thinking of for on-line bk auctions for timeshares. . .

https://www.bkassets.com/timeshares/

With an additional Ebay link. . .

http://stores.ebay.com/Online-Bankruptcy-Asset-Auctions/Timeshares-/_i.html?_fsub=1190267012&_sid=1674562&_trksid=p4634.c0.m322

If the asset is not covered by an exemption it will be up to the Trustee to decide if it is something he/she wants to market. If he/she is unable to sell the asset it will eventually be abandoned and ownership, as provided for by the divorce decree, will be returned to you.

Tomorrow morning I will go through all of these posts to see if there is something I can add.

Des.
I followed the links, we should have went there first and purchased, Very big difference in price :(
 
I followed the links, we should have went there first and purchased, Very big difference in price :(
Agreed. Back in the day before on-line auctions, a friend of mine purchased a timeshare out of the Orange Tree bankruptcy. She paid cash and got a great deal.

Des.
 
Here is the Virginia Statute regarding certain real and personal property exemptions (akin to a wildcard exemption):

https://law.lis.virginia.gov/vacode/title34/chapter2/section34-4/

Here is the Virginia Statute regarding when the above exemption must be filed:

https://law.lis.virginia.gov/vacode/title34/chapter2/section34-17/

I tend to doubt your half interest in the timeshare exceeds the limit granted. Talk to a local attny - but my guess is that the asset is exempt. You list it, apply the exemption and let the Trustee decide if he/she thinks there is value to the bk estate. That’s how it works.

Des.
 

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