Legal Question in Credit and Debt Law in Georgia

Foreclosure or Bankruptcy

I transferred my timeshare to someone that I met through work that was recently laid off. He and his wife assummed my mortgage loan of 8500.00 and took over payments for about 9 months, now they are past due by 3 months and the timeshare company is calling me and my husband. I was told if I pay I have no right to the property because it is in the new owners name.

I called a collections attorney and found out that timeshares do not release ownership of the original owner unless the timeshare is paid off. We tried to sell it but it stayed on the market for 2 years. WE had no idea that we would still be legally binded to this property. They are threatening to put this on all four of our credit reports as a foreclosure. I don't know what to do.

Is it best to have a foreclosure on the credit than bankruptcy? I was thinking about just filing on them alone. I have an excellent credit rating of 800, this is going to ruin me. Right now I don't have the funds to pay this debt and try to sue these folks later, we have a new baby.

Just a little direction please.


Asked on 12/04/07, 1:40 pm

2 Answers from Attorneys
Scott Riddle Law Office of Scott B. Riddle, LLC

Re: Foreclosure or Bankruptcy

It is safe to say a foreclosure or bankruptcy would significantly harm your credit. You also do not "file bankruptcy on" certain debts - YOU file for bankruptcy, and all debts and assets go in. Your obligations to pay for the timeshare are found in the documents, and should be understood before signing, and definitely before signing title to someone else.

Read more
Answered on 12/04/07, 2:12 pm
Glen Ashman Ashman Law Office also dba Glen Ashman Attorney

Re: Foreclosure or Bankruptcy

Bankruptcy involves ALL your debts and assets. You cannot pick and choose.

Bear in mind that even if they foreclose, since most time shares are worthless or nearly so, they may still sue you for the balance.

A bad debt, a foreclosure and a bankruptcy all can impact your credit.

You really need to meet with a lawyer to review your options. If you're in our area, feel free to call me.

Read more
Answered on 12/04/07, 2:36 pm


Related Questions & Answers

More Credit, Debt and Collections Law questions and answers in Georgia