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Ask Terry L. Your Own Question
Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2897
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I filed a title 11 bankruptcy and listed my timeshare as I

Customer Question

I filed a title 11 bankruptcy and listed my timeshare as I did not want it anymore. It was listed as a deed of trust by my attorney with a value of $700. The association is now sueing me for the annual maintenance fee. Their lawyer sent me a letter stating my "discharge in bankruptcy has no effect whatsoever upon your continuing obligation to pay dues and assessments, which have recently accrued and are in default" He also states "your bankruptcy identified the debt as being a deed of truct. It is not. It is a claim for annual dues and assessments and this obligation continues to accrue annually." Is this correct?
Submitted: 6 years ago.
Category: Bankruptcy Law
Expert:  Terry L. replied 6 years ago.
Chat Conversation Started
Terry L. :

Hi and thank you for your question. In the future, you can request me to answer any further questions. While you still have the title in your name, the bankruptcy code excludes from discharge assessments that come due after filing and before the title is transferred.

Terry L. :

you can surrender the timeshare and the loan is discharged in the case, but until you quitclaim it back or it forecloses, you are liable for assessments.

Terry L. :

the same would go for a condo.

Terry L. :

Therefore you will need to make arrangements to pay the dues/assessments until you quitclaim the title or they foreclose on it to do so.

Terry L. :

do you have any further questions?

JACUSTOMER-y0sme3ln- :

I ask the timeshare management company if I could quit claim it after the sent me a bill and they said they didn't even know what a quit claim was. I guess they lied.

Terry L. :

wow

JACUSTOMER-y0sme3ln- :

But I can pay the assessment now and quit claim it to get rid of it?

Terry L. :

talk to your attorney or their attorney to request one. I often get them sent right away from the timeshare so they can get it rolling.

Terry L. :

you can pay the assessments sure, and once quitclaimed, you are done

JACUSTOMER-y0sme3ln- :

Can I add a little info to this story

JACUSTOMER-y0sme3ln- :

I filed in 1999. When they told me they didn't know about a quit claim I said maybe my X was interested in using it as we bought it together but had been divorced for 8 years. They said they didn't care who paid it. So she started using it and paying the assessment since 1999. Now she doesn't want it anymore and told them to go after me for the money which is what they did. owe only $ 570 for the year. Do you think any of this makes a difference?

Terry L. :

whomever signed on the purchase is responsible for the payments,subject to any provisions in the divorce.

JACUSTOMER-y0sme3ln- :

thanks

Terry L. and other Bankruptcy Law Specialists are ready to help you
Expert:  Terry L. replied 6 years ago.
thanks for your question, good luck to you.