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My Timeshare just filed Chapter 7 bankruptcy

Discussion in 'Buying, Selling, Renting' started by Mixedupmo, Nov 27, 2016.

  1. Mixedupmo

    Mixedupmo Guest

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    Resorts Owned:
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    Scottsdale pinacle
    Please...we need advice? Harbor Hill at Provincetown closed its doors in September. They are filing Chapter 7 Bankruptcy and are for sale. We have been trying for years to dump our ownership which is paid in full. Can we get out of it now that they are bankrupt?
     
  2. TUGBrian

    TUGBrian Administrator

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    its likely you will (or have already) be sent a letter explaining the situation to owners.

    if not id write or otherwise contact your HOA.
     
  3. buzglyd

    buzglyd TUG Member

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    If the plan is dissolved and the property sells, you will receive a portion of the proceeds.
     
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  4. Mixedupmo

    Mixedupmo Guest

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    They are in debt so badly due to imbezzlement of funds. There most likely will be no money distributed to owners...I really dont want any money...we just want legally out of our timeshare. We have not received any letters...I keep up with whats going on by googling it every couple of weeks
     
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  5. Mixedupmo

    Mixedupmo Guest

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    There is no one to write a letter to!
    There is only a trustee.
     
  6. TUGBrian

    TUGBrian Administrator

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    it sounds like you wont have to worry about being obligated with the ownership much longer...but in this situation it sounds like a good thing!
     
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  7. Mixedupmo

    Mixedupmo Guest

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    They are taking bids for re sale untill feb 14 2017. Idont understand what chapter 7 bankruptcy means to me. Hopefully my ownership will be dissolved!
     
  8. presley

    presley TUG Review Crew: Expert TUG Member

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    Another timeshare chain could buy it. If that happens, you will continue to own and everything will proceed as normal for you except the the new owner will keep trying to sell you an upgrade. Have you listed your timeshare for free on Tug? If you have, be patient. It could take several months to find a new home.
     
  9. Mixedupmo

    Mixedupmo Guest

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    According to the sale documents it will be sold free and clear and will not be kept a timeshare!
     
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  10. presley

    presley TUG Review Crew: Expert TUG Member

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    It sounds like you got a hold of some documents/more information since you posted this thread. Is the resort still operating right now? Are owners staying there and someone is there answering the phone, etc?
     
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  11. Mixedupmo

    Mixedupmo Guest

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    The place is closed down...no one working there...all utilities are off and it has been winterized..so its a ghost town!
     
  12. dougp26364

    dougp26364 TUG Review Crew: Veteran TUG Member

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    A few years ago, the developer/manager of two resorts we owned in Branson, MO, French Quarter Resort and Grand Regency at Thousand Hills, went in the liquidation bankruptcy. There were several things that happened during this process.

    1. Both resorts remained open and the court assigned a management company to run them. In this case it was Spinnaker.
    2. One of the buildings at French Quarter that had some of the timeshares weeks sold was used as collateral to secure bank loans, which separated it from all the other buildings, which had been sold out and had not been used as collateral for bank loans.
    3. When the bankruptcy was closed, Spinnaker continued as the management company for French Quarter but, they didn't want Grand Regency. The court found another management company, the one managing the Colonade, to manage Grand Regency.
    4. The building in French Quarter Resort that had been used as collateral for loans was sold to the highest bidder and those owners were out both their money and their weeks. Spinnaker offered them a "deal" to purchase a timeshare from them at one of their other resorts.
    5. Grand Regency's new management company essentially took the money from MF's and ran. They now have a new management company and owners got tagged with a special assessment this year. Hopefully things will begin to look up at that orphaned resort.

    A major difference is neither of these two resorts closed their doors. French Quarter Resort is a reasonably desirable mature resort with potential for a management company. I was surprised they didn't look at closing Grand Regency. When all the dust settled, RCI downgraded French Quarter from Gold Crown, which surprised me because nothing has really changed. Same amenities, same accommodations, same activities.

    Will you find yourself out of your deed? Since the resort is closed I think that's the most likely possibility. Is it a done deal? Not if there's a management company out there who's willing to pay for the asset in bankruptcy court and continue managing it as a timeshare company.
     
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  13. Mixedupmo

    Mixedupmo Guest

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    For years an emplyee running everything was embezzling money. Taxes were not paid. Maint fees were posted...but never went into the account timeshare. So much money is owed to so many people...close to $1,000,000. They tried to get all the owners to pay $1000 extra assessment fee to stay in business but not everyone paid and so they finally closed. No owners have received any type of letter...just an email survey by the trustee asking alot of questions to see if the interest was there to have the owners pitch in more money to save the resort. Obviousy no one wanted to trust more money would be the answer so they filed chapter 7 bankruptcy and are taking bids for the sale of the property with clear title.
    The only way I know anything is by googling it and reading the sale documents. I am hoping this means we are done with this place legally?
     
  14. chapjim

    chapjim TUG Member

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    Chapter 7 is a liquidation -- sell all the assets and distribute the proceeds to the creditors, secured creditors first, unsecured creditors next. Anything left over goes to the owners/stockholders. Guess what? There's never (extremely rarely) anything left over. Owners get wiped out.
     
  15. dougp26364

    dougp26364 TUG Review Crew: Veteran TUG Member

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    So the big question for owners will be, is the management contract an asset for sale or, is the building and grounds considered the asset that's for sale. Past that, if the building and grounds are the asset for sale, is there a resolution for all the "lifetime" deeds held by hundreds, if not thousands of owners.

    Several years ago in Las Vegas there was a resort by the name of The Debbie Reynolds Resort, which got into financial difficulty. What was known as the WWF (World Wrestling Federation) bought the management contract and announced plans to redesign the resort into a gaudy wrestling theme. They ran headlong into angry owners who stood their ground. In the end, WWF found out they didn't own the rights to do whatever they wanted. In the end, the owners rights stopped them and, they sold the management contract to another company. There was also the old Ramada Inn brand of timeshare, which in Vegas went through several incarnations until the owners agreed to sell their land to LINQ in exchange for a "new" resort a little further off the strip. And of course there's my previous post about what happened to some of the owners at French Quarter. In the buildings not used to secure bank loans, the management contract was the asset sold and the owners kept their deeds. In the one building that was used (the newest building) as collateral for a bank loan, the building was sold and all owners with deeds in that building had their deeds nullified by the bankruptcy court and they lost everything. That building is now a full ownership condo building called Kingsgate (I think that's the name)

    I guess what I'm saying is, you won't really know until the dust settles and the court makes a ruling as to what is/can be sold and what rights the owners have. I suspect if the resort has been sold out a long time ago and, if the resort has closed it's doors, there will be some sort of complicated manner of dissolving the deeds and selling the building/land. If there are no bank loans against the property, I suspect there will only be liens filed from vendors who haven't been paid. If that's the case there may be a fund remaining to be distributed to the remaining deeded owners in good standing.

    It's definitely a complicated situation and it would be interesting to know the resolution. A little more knowledge for the base.

    I'm sure as time passes, as owners grow older and estate settlements leave timeshare ownerships essentially abandoned, we'll see more and more of this. Of course as MF's continued to increase at an average rate of what seems to be between 3 and 5% and if income remains stagnate (a lot of if's in that scenario), we may see more timeshares in dire financial straights as defaults on fee's increase. Something that's been discussed for a few years now on TUG.
     
  16. Park

    Park Guest

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    I was involved in organizing an owners group about 20 years ago to deal with a chapter 7 bankruptcy. It was the FDIC vs owners. We won then but now maybe we should have taken the bail out. It was good that we were organized as the trustee and FDIC was working a solution to sell enough assets to clear the creditors and leave the FDIC in the cold. The deal would have turned over the management/ownership to the existing manager. The contracts would have continued. Our organization and lawyer somehow convinced the judge to let the timeshare owners be the owners thru the new Owners Association. We took over debt free. The debt free had all been worked out between the Trustee and the existing manager so we just stepped in. ORE also supported us and we contracted with them to be our managers.

    Key to this was my noising around the Bankruptcy Court Office and finding the name and address of all of our owners who were creditors. Copied the pages for a few dollars and started with a post card called meeting of owners in the local area. Had about 50 show up and someone brought their lawyer.

    Key also was the fact our contracts had a "non disturbance clause"

    The danger I see is another timeshare buying owners and property. Then sell the property and move your ownership to other property where they have unsold weeks and your fees continue.
     
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  17. tomt73

    tomt73 TUG Review Crew: Expert TUG Member

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    If you simply want to walk away, just let the bankruptcy play out. Chapter 7 is a liquidation in which all the assets of the corporate entity are sold, and the money distributed, first to the tax authorities, then to any secured creditor (like a mortgage holder) and then to unsecured creditors. If you hold a duly recorded deed to your week, you are an "owner", and thus last in line to get paid if there is anything left at the end. If you hold a "contract to use" the property and not a deed, then you are an unsecured creditor, and can expect to be treated as such, which means that two or three years from now you might get a check for a few pennies on the dollar.

    The bankruptcy will terminate all ownership and debt interests in the property, so you'll be out of any and all MF obligations when the judge approves the trustee's actions and accounting at the end. Were I you, I would not pay any further MF's on the property on the grounds that it is unusable (since it shut its doors).
     
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  18. Mixedupmo

    Mixedupmo Guest

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    Thankyou....I am hoping we are done with this timeshare for sure!
     
  19. Centurion

    Centurion Guest

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    You should receive a notice not from the resort but from the bankruptcy court directly. The notice should allow you to add your name/claim to a list of "creditors." As someone mentioned earlier in the post it would be paid out of the proceeds of the sale to secured creditors first and then to unsecured creditors until no money is left to pay out of the sale proceeds.

    Even if you do not receive this notice from the court I would still suggest filing a claim with the bankruptcy court for the amount of your losses and perhaps you'll get lucky and receive a portion or all of your claim if you are high enough on the list.

    Best of luck!
     
  20. Mixedupmo

    Mixedupmo Guest

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    Thankyou....I did just receive that paperwork...I will fill it out!
     
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  21. Talent312

    Talent312 Tug Review Crew: Rookie TUG Member

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    Bankruptcy won't invalidate the deeds of individual owners, only the assets of the entity which filed.
    No matter who ultimately acquires those assets, they'll be subject to the deeded TS's of individual owners.
    They'll need to acquire them from the owners, but without a TS operation, they won't be worth anything.
    At some point, you'll likely be asked to sign a deed over to the new owner.

    I would check your governing docs to see if there are any provision for this situation.

    .
     
  22. Centurion

    Centurion Guest

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    Be sure not to miss the deadline and send the paperwork certified mail. It's worth $4 to ensure your claim is received by the bankruptcy judge. Hopefully through the liquidation you can see some of your money back. You may even volunteer to testify in bankruptcy court by phone to give your version of the story. Best of luck to you!
     
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  23. windharp

    windharp Guest

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    So it seems that my Monarch Grand Vacation ownership, as it is a bankrupt company and I possess a bankrupt, worthless deed, that I cannot sell this ownership. *sigh*
     
  24. TUGBrian

    TUGBrian Administrator

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    I thought monarch was purchased by DRI, there have been some monarch owners who have successfully given their ownerships back to DRI under their surrender program, have you contacted them to inquire?
     
  25. windharp

    windharp Guest

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    I was offered a buyback today, only if I signed up under their new program and spent more money with DRI. Huge strings attached. I will let it go at this point.
     

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