Legal Question in Credit and Debt Law in Georgia

Depending on the numbers, a bankruptcy may give you a way out. See a lawyer to discuss this.

What you did not tell us is where the timeshare is located. The laws of the state where the timeshare is located will govern. You mention the statute of limitations. If the timeshare is in Pennsylvania, it is indeed 4 years, but it may be longer in Georgia since you reside there.

The statute runs from the date of your last payment.

The sky will not fall if you do not get back to the debt collector by 9/22. You may not need to file bankruptcy either. I can't make any promises, but depending on who owns the timeshare, they may be willing to take it back. If you don't have a deed, what do you have? Points or something? Do you own your "timeshare" whatever it is free and clear? Do you know someone who actually wants this albatross? (Sorry, but I have a very negative view of timeshares - its not something you want to saddle a relative with unless they absolutely would love it). Selling it is not an option - you will get no where near what you paid for it. Most of the offers to sell this for you or for you to pay a company thousands to take it off your hands are nothing more than scams.

My advice regarding the timeshare is to see if the timeshare company will take it back if you cannot transfer it. I have, for some clients, gotten the timeshare company to do that, even though they ordinarily would not do so. It depends on the timeshare company however.

Regarding the back fees, how much do you owe? You have a couple of options. Unless you have a lot of other significant debts, there is no need to file bankruptcy. In a worst case scenario, if someone sued you and transferred the judgment to Georgia, there is wage garnishment, but you don't work. Social security and pension income is exempt from levy, meaning they cannot touch it. The judgment will be a lien on your real property but as long as your real property is mortgaged, they will not force a sale. At your age, will you be needing credit again? This might also be a factor. If judgment does not concern you, then I would try to settle the debt.

Most debt collectors are motivated to settle accounts. Why? Because that is how they get paid. They reason that it is better to take 50% than nothing. Most debts can be settled before, during or after judgment. If you can pay in a lump sum, the lower they will go. I have some creditors, even where the statute of limitations has expired, who will take nothing less than 50%. Others will take as low as 10% and some want 100%.

What I would do is find out: (a) the balance owed as of now; (2) whether the timeshare company still owns the debt or whether the debt is owned by the debt collector or a junk debt buyer; and (3) when the last payment was made.

If the statute has indeed expired, then I would offer no more than 25% just to get this resolved if they accept. If they say no, tell them to have a nice life without your money. Pay nothing - even a partial payment now will revive the statute so if they play hardball you play harder.

Get a settlement letter in writing before you pay if they agree. If the statute has not expired, still try 25% but they may want more. If you have it, then you can pay. If you don't, then save up until you do. Don't make payments unless you are really close to the settlement figure and never make more than 6 installments.

Creditors and collectors are more motivated to settle the last weeks in the month so that is the time to make your best deal.

If you are interested, I can help you resolve the debt and possibly your timeshare for a reasonable fee. Please contact me at [email protected] if interested.

I do not engage in litigation or bankruptcy. If either is what you are interested in, please contact a local Georgia attorney.

I have lots more advice I could