IVA and Timeshare

[kpw]

Hi
Can anyone tell me if you own a Timeshare how it is dealt with in an IVA

[MelanieGiles]

Hi kpw

An entitlement to a timeshare or part-ownership property, is an asset in any form of insolvency, but depending upon the resale value can also be a liability, as some of them carry expensive annual maintenance charges. If these charges remain unpaid, then the timeshare company reserve the right to take back the week or weeks, so most insolvency practitioners would prefer to effect a market value sale within the debtor's family, rather than to try and sell on a difficult open market.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[kpw]

Thanks Meanie
Say the market value was around 12k-14k and the annual charges were only about £400 would you be expected to realise whatever it could be sold for or is the IP just likely to say its not worth it.

[MelanieGiles]

You would be required to attempt to get the market value for the timeshare, but the IP is unlikely to allow you to pay maintenance charges. A quick sale is usually the best option. That would be a very expensive week - which resort and which week of the year do you own? Remember timeshare resales very rarely hit anything like the sale prices, especially those in the Mediterranean and the Canary Islands.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[kpw]

Thanks Melanie
I just wanted to confirm that it would be regarded as an asset available to the creditors. I realise that it is probably going to be difficult to sell at present and/or get anywhere near market value as it is in a developing area with lots of new builds going ahead.