A timeshare purchase usually reserves six (6) nights and seven (7) days in a network of resorts. The timeshare is sold through a presentation hosted by commissioned salepeople that lure purchasers with a free night in a resort and/or a free toaster-oven at best. Often my clients ask me whether they can sell their timeshares, however, a timeshare is under the law deemed only a “license” to use the resort, meaning the purchaser does not have any ownership or titled interest in the resort whatsoever. For greater example, if one has a ticket to attend a sporting event at a particular venue on a particular date, they do not own the team or even the seat, just the right to sit there for the game, they can not sell the seat or the sports team.
The reasons why people purchase a timeshare vary, on it’s face it may be presented as a good deal (ever hear a car salesman say that you are buying a lemon), or after a three-hour presentation people just sign up so they can finally leave.
Generally payment for a timeshare is taken automatically out of the purchaser’s checking account on an ongoing monthly basis, this way the monthly fee is out of sight and mind. Timeshares generally average $300.00 per month with a $75.00 maintenance fee. Let’s do the math, a combined monthly payment of $375.00 per month times 12 months is a total payment of $4,500.00 per year. Now on a per night basis, for a stay of six (6) nights, divide $4,500.00 by six (6) , and the per night cost is an outrageous $750.00 per night.
In addition to the cost of the timeshare, travel and meal expenses are also incurred. Moreover, if one is having a rough financial year, they do not have the flexibility to forego paying for their over-priced vacation because the monthly fee (averaging $375.00) is taken whether the purchaser uses the “time” or not.
Before purchasing a timeshare do your research, go online and see how much it costs to stay at a particular resort per night and compare it to the timeshare cost and most likely the timeshare will be tremendously more expensive.
There is good news. Timeshares are a dischargeable debt in Bankruptcy. Meaning that the monthly fee through bankruptcy will be turned into monthly savings. With those savings the Petitioner in Bankruptcy can save for a vacation that is affordable and on their own terms. If you have any questions about your particular timeshare, call our Philadelphia Bankruptcy Law Firm and I will be happy to discuss the financial implications of having one. Thank you for reading this post.
If there are any general questions or topics you would like to read about relating to bankruptcy law in the Philadelphia, Pennsylvania region, you may contact the Philadelphia Bankruptcy Lawyers at Sadek Law Offices, LLC at 215-545-0008 or (877) 4-LAW-411 or email brad@sadek-cooper-site. Thank you.