Legal Question in Bankruptcy in North Carolina

Nothing. Title to property does not really transfer to the trustee. The trustee just assumes control of it. If the trustee decides that an asset is worthless then the trustee returns it to the debtor. Timeshares are worthless even if paid for - although it may depend on where the timeshare is at.

Ms. Hunter is correct. If the trustee is unable to sell it, he/she will abandon it. In reality most trustees will abandon without even trying as it is near impossible to sell these things.

If there is a risk of forfeiture and the debtor wants to prevent it, or if the debtor wants to keep the timeshare, he/she should exempt it, using any unused exemption amount. If the trustee does not object within 30 days of the conclusion of the Meeting of Creditors, the debtor retains it free and clear of the trustees claim, except the trustee could still sell it, giving the first dollars up to the amount of the claimed exemption to the debtor. For certainty the property could be Abandoned by the trustee with a 10 day notice to the creditor body and hearing if there is an objection (this is the common method that banks will use to get access to foreclosure prior to the closing of the case) If the debtor does not ask for abandonment and the trustee does nothing (ie no sale) and the case is closed, then the property is deemed abandoned and the legal status returns to that which existed prior to the bankruptcy, that is, the trustee has no further claim against the property.