Types of debts, Potential resolutions and services
Timeshare Divestment
Timeshare issues can involve a combination of real estate, contract, and business laws. Some common timeshare issues may include:
- Default on timeshare payments (i.e., non-payment)
- Failure of the property (such as an unexpected timeshare foreclosure)
- Timeshare cancellation or rescission
- Transferring rights, giving a timeshare away and inheritance of the timeshare property.
- Overlap of state laws (timeshares are frequently located in a different state than the purchaser’s home residence)
- Death of an owner/co-owner
In most cases, a timeshare agreement is final once the contract is signed. On the other hand, some timeshare companies may provide a short "return window," referred to as a rescission period. This period
of time allows the buyer of the timeshare, the ability to have the contract be cancelled or revoked. This, of course, depends on the individual agreement between the Resort owner and the buyer.
Finding the Right Experienced Consultant.
An experienced consultant can guide you through the difficult and downright tedious task of expediting the divestment process. This process will protect you from future contracts, confusion and financial obligation. An experienced consultant can make sure that you are not being ignored or set aside during the process. They can assist you through the process of finding a better solution to the issues caused by the contract that may have become burdensome to you and your family.
How Can Timeshare Issues be Resolved?
An experienced consultant will need to review the purchase agreement/contract to determine how the divestment process will work. The contract may contain terms and conditions describing what will happen if the buyer defaults on regular contract payments, or if the property is unexpectedly destroyed or foreclosed upon. There will be a review of any clauses that state any possibility of transfer to family upon death.
Types of Debts and Potential Resolutions
There are many ways we can help relieve you from burdening debt. We can assist in obtaining a true debt cancellation, mortgage foreclosure (if needed), or return of debt to the original holder. There are alternative routes that can be taken as well should your debt need to be handled in a different manner.
We have assisted many consumers of resolving even the most difficult debt relief matters. Having been involved in debt relief for quite some time, we know the advantages and disadvantages involved in different types of debts. Over the years, we’ve have been able to relieve many customers from troublesome debts that have placed a burden on their lives.
As advocates of consumer protection, you are the priority and remain the priority throughout the process. The objective of our company is making the debt relief process as smooth and supportive as we possibly can. The goal is to provide you with the representation needed and the positive outcome you deserve.
Debt Relief Services in Florida
When and why do you need to cancel a debt?
Here are some of the many reasons consumers seek debt cancellation:
· Buyer’s remorse – it is legal to cancel an ownership due to buyer’s remorse since state laws mandate that your resort should have a 10-day cancellation provision.
· Fraud or deception – if you think that you have been misled by a resort representative, or you ended up paying more than what was promised.
· Cannot manage yearly maintenance fees – if it’s become difficult for you to pay your yearly maintenance fees, it’s sensible to want to cancel the debt.
· Unforeseen changes – a change of status in life or financial means, like a medical emergency, home purchase, marriage, or death of a loved one, are common reasons that occur that require debt relief.
While every case is different, there are some routes you can take to relieve the burden your debt might be placing on you.
We can assist you in the following:
Debt cancellation – this process allows for the debt to be cancelled with no further actions needed.
Deed in lieu of foreclosure – this process allows for the debt to be returned to the original holder in lieu of a foreclosure and potential harm to your credit. This is a good option if the debt is past due and there are no other options available to alleviate the debt.
Debt deed back - this process allows for the debt to be taken back by the original holder as an exchange of ownership. This allows the debt to be taken from the debtor and returned to the holder free and clear.
Your Debt Relief Rights
Unwanted debts can be financially and emotionally devastating. Recuperating your assets and peace of mind can take time as the process requires multiple steps to be successful. Fortunately, there are laws in place to protect consumers. The safest way to get out of an unwanted debt is to have an experienced company deliver a valid cancellation of the debt.
Deed in Lieu of Foreclosure: How It Works
A deed in lieu of foreclosure is one way to get rid of a burdening debt if your current financial situation is keeping you from making payments. Foreclosures are not unusual in the timeshare industry. Many owners purchase a timeshare when they are financially stable. But change is inevitable, which is why timeshare companies or resorts provide an opportunity that is more desirable than a standard foreclosure. A deed in lieu of foreclosure is a transaction in which the owner surrenders and deeds back the timeshare to the developer. There are consequences involved, like a mark on your credit score, however this is a minimal impact compared to a standard foreclosure that may occur. Once an agreement is made, you will sign the deed back to the developer, which will successfully bring your ownership to an end. The debt is forgiven, and there are no further legal difficulties from the debt company.
Managing Maintenance Fees
One of the main things that many owners seem to find difficult is paying their maintenance fees every year. Especially if they are not using their timeshare. Due to this, many owners seek to resolve themselves of the burdening debt. There are routes in place that can assist owners in alleviating this continuing debt.
When should you consider the option of debt relief?
If you have fallen behind your payments and are unable to catch up, it is time to consider your options to alleviate this financial burden. An experienced company knows the extensive knowledge and experience needed to minimize your risks and secure the best possible outcome for your situation. When you purchase a timeshare, you might never anticipate being in a position where you are unable to pay for it anymore. Unfortunately, financial hardship can strike anyone at any time.
Choosing the Right Resolution for You
Once you have decided that the issues caused by the debt are no longer manageable, it is time to take a further look into details of each debt resolution. Research will help to assist you to understand some of the choices available to decide on how to manage your debt. In addition, once you are aware of the different resolutions you will be able to contact the appropriate company or attorney to assist you in the debt relief.
Bankruptcy
Although Chapter 7 and Chapter 13 bankruptcy are two different debt solutions, they are both legal options that may help you if are sinking in debt. If you have little to no additional income after required expenses have been covered and paid, Chapter 7 may be an option.
Chapter 7 bankruptcy could discharge your debt so that you no longer have to pay it back and provide you with relief from debt collectors. However, understand that Chapter 7 bankruptcy may cause you to lose some assets which would be discovered during the process.
In the event you have adequate income and do not qualify for Chapter 7, you may have to file for Chapter 13 bankruptcy. Chapter 13 bankruptcy may allow you to make a single, consolidated payment toward your debts through repayment plan that typically lasts three to five years. Chapter 13 sometimes requires a significant payment that could possibly affect your financial status.
There are some debts that cannot be discharged in bankruptcy. These include student loans, child support and alimony, and tax debts.
It is important to consider all possible alternatives prior to bankruptcy as it may cause you to suffer the loss of valuable assets, remains on your credit report for 7 to 10 years, and make it difficult for you to borrow money and get approved for a loan.
Credit Counseling
Credit counseling agencies are typically non-profit organizations that help consumers learn about budgeting and money management, among other things. If you’re in heavy debt, a credit counseling agency may offer a Debt Management Plan (DMP) to help you get out of debt and save on interest.
When you enroll in a Debt Management Plan, the credit counseling agency works with your creditors to lower the interest rates on your debts, making it easier for you to pay down your balance. Then, you make monthly payments to the credit counseling agency and they send the money to your creditors on your behalf.
If you opt for a DMP, you may have to pay an enrollment fee plus monthly fees to the credit counseling agency. However, since credit counseling may protect you from becoming delinquent on your payments, these fees may be worthwhile
If you’re able to afford more than your monthly payments, have less than $10,000 of debt, and/or one credit card, credit counseling may be a good option. However, if you can’t afford to pay more than your monthly minimums, you may want to consider an alternative solution for paying off your debt.
Debt Consolidation Loans
The purpose of debt consolidation loans is to combine multiple debts into a single, manageable, low interest payment. This solution involves obtaining a fixed-rate loan and then using the money from the loan to pay off your debts and then pay back the loan over a set period of time. Debt consolidation loans could streamline the debt payoff process, giving you a clearer path to when you could pay off your debt.
Since a debt consolidation loan allows you to make one single payment to take care of all your debts, it could reduce your risk of missing or being late on payments, which could help improve your credit score. It could help you pay off unsecured debts like credit card debt and medical debt as well as secured debts like student loan debt.
While debt consolidation loans offer many advantages, they also come with a few drawbacks. The most notable drawback is the fact that it won’t prevent you from continuing bad money habits. Instead, it enables you to continue using credit cards that may have been the cause of your debt in the first place. Another drawback is that you typically need to have good credit to qualify for a debt consolidation loan at an interest rate low enough to make it worthwhile.
If you have a large amount of debt (at least $10,000), are looking for a way to organize your debt, want to simplify the process of paying it off, and feel confident you can avoid using the credit cards you are trying to pay off, a debt consolidation loan might be right for you.
Debt Relief
Debt relief is also known as debt resolution, debt negotiation or debt settlement. Debt relief is a method of negotiating with your creditors to settle for less than the outstanding balance of your debt. You can do this on your own or use professional debt settlement services like to help settle your debt for you. However, working with an experienced company is beneficial as the company knows what to expect and handle all aspects of the process.
If you decide that a debt relief program is for you, then you can expect to make a monthly deposit into a specific account. As your balance increases in the account, the debt relief company will contact your creditors to negotiate lower settlements and/or a complete settlement. When your debt is settled, you will be required to pay a fee that typically ranges from 15%-25% of the enrolled debt.
While debt relief could give you the chance to save significantly and settle your debt in 24 to 48 months, it could negatively impact your credit score. This process does not stop creditors from being able to call to attempt to collect a debt. There are no guarantees that a debt relief company will be able to negotiate your debt for significantly less as some creditors simply do not deal with debt relief companies as a rule.
If you are unable to maintain the payments required or have fallen behind and have thought about other methods of managing your debt, then debt relief may be a sensible choice for you.
Do-it-Yourself
Some debt might not require a professional to assist you. There are times that you may be able to handle a small debt on your own. Doing-it-yourself involves using resources available to you through online sites, budgeting tools, interest calculators and other materials to understand how much you need to pay each month to save on interest and pay off your debt by a certain date.
If the debt is not complicated and you are motivated, wanting to rid the debt, and willing to put time and energy into the situation, this may be the right strategy for you. However, should you become overwhelmed and feel like the situation has become too much to manage, then looking for a professional and experienced company would be the best solution for you.
Finding the Right Resolution for Debt Relief
The information provided can be overwhelming as there are many different routes that can be taken to relieve burdening debt. There are a variety of debt solutions that assist you with financial matters that may have gotten out of your control. It is best to know your financial goals, the type of relief you are seeking and the process you want to take so that we can provide consultation on your best route for success.
Services
If you are currently facing any of the circumstances described above or any other debt, credit, loan default or burden, please contact us so that we can assist you with the matter. Once we have discussed your particular situation, we can then help determine the correct service needed.