One of the hardest things that my potential bankruptcy clients face from an emotional standpoint is losing property they have acquired over the years. In recent months, I have noticed that some of my clients have an odd attachment to their timeshares.
The reality is that timeshares are a lousy investment. If you don't believe me, just check the prices of timeshares available on eBay. A few years ago, I attended a timeshare presentation in Las Vegas for a development that was being heavily promoted in the Southern California market called Tahiti Village. The unit that the developer offered me for $55,000 is now available on eBay for $297...and there are no bids at that price at the time I wrote this article. I have als personally purchased 2 timeshares on eBay...for $1 each.
Timeshares can be a decent vacation value if you don't pay an outrageous price to buy one. If I pay $800 a year for the week that I own in Kuaui, that is about $115 per night at a very nice resort and that seems be hard to beat for a decent hotel in Hawaii. However, it is only a value because I own the unit free and clear. I don't have to worry about a monthly payment to a lender for an overpriced unit.
I have seen clients that owe $12,000 or more on a timeshare. They are usually better off letter the unit go back to the developer or the HOA and buying a much cheaper timeshare after their bankruptcy or even renting a timeshare from a website such as Redweek.com.
If you are in Southern California and would like a free consultation regarding you debt problems or want information on how to get rid of your timeshare, please call me now at (619) 448-2129.
About the Author: Carl H. Starrett II has been a licensed attorney since 1993 and is a member in good standing with the California State Bar, the San Diego County Bar Association and the National Association of Consumer Bankruptcy Attorneys. Mr. Starrett practices in the areas of bankruptcy, business litigation, construction, corporate planning and debt collection.
