Timeshare Owners Should not be Impacted by Bankruptcy Filing at Consolidated Resorts
Saturday, July 25, 2009
…but it is important for timeshare owners at Consolidated Resorts timeshare to continue to make payments and pay dues on the vacation property they own.
Consolidated Resorts, a Las Vegas timeshare company that filed for bankruptcy protection at the end of June, is the developer of the Tahiti Village Resort, the Tahiti Resort, and the Club de Soleil, (all Las Vegas timeshares). They also developed three Orlando timeshare resorts and nine Hawaii timeshare resorts. Almost all of the timeshare units at these resorts have been sold, meaning that the timeshare owners (not Consolidated Resorts) hold deeds to these properties.
According to ReviewJournal.com, the bankruptcy attorney for Consolidated and 12 of its affiliated companies, Lenard Schwartzer, has explained that the people who bought deeds to timeshares at the companies’ resorts should not be affected by the bankruptcy filing. “They (the timeshare owners) are able to call up and get their week as if this bankruptcy never happened,” says Schwartzer.
Since the collective of timeshare deed holders own the resorts, and all of the resorts have enough money to remain in operation, (plus the fact that none of the timeshare resort management companies were involved in the bankruptcy filing) there is really no reason for Consolidated Resort’s bankruptcy to become a problem for the resorts. Unless—and this is a very important detail—timeshare owners take it upon themselves to stop paying their annual fees, or stop making payments. If timeshare owners panic and stop paying what they rightfully owe, the timeshare owners themselves could become the downfall of their own resorts and vacation ownership.
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