bankruptcy

[Joni]

can anyone tell me what happens when someone goes into bankruptcy and has to give up there DVC. I heard that there is an auction site that all items are put up for bid. Does Disney snatch it right up.

 

[CarolMN]

Bankruptcy does not eliminate Disney's ROFR. Once the DVC is sold (doesn't matter how it is sold), the proposed sale contract must be submitted to Disney. Disney has the right to substitute itself for the buyer - same terms and conditions. Unless Disney waives it ROFR, the buyer (even if he/she got it at an auction) will not get the contract.

Best wishes-

 

[nezy]

can anyone tell me what happens when someone goes into bankruptcy and has to give up there DVC. I heard that there is an auction site that all items are put up for bid. Does Disney snatch it right up.

Do you have to give up your DVC?

 

[manning]

If you are going to go that route you better file this week. Under the new law you cannot walk away from your debts. You will still be liable to pay them off. The creditors can still come after you!! You will be required to work out a payment schedule.

Plus you have to get counseling and a who bunch of other things. Just heard that on the radio yesterday from a financial advisor.

 

[sagwanamu]

Do you have to give up your DVC?

I bet DVC will be the first thing that judge forces her/him to give up.

If the DVC is already paid for and he/she has not sold it yet when he is deep in the debt, what she/he is thinking?

If he/she is in payment plan and missed several payments, which I bet he/she had, I am pretty sure DVC is in process of taking it back. And I am pretty sure DVC will take it back even before it goes on for auction.

 

[KJMickey]

Before you assume you need to get rid of DVC....look at your circumstances.

We just went through this. We assumed our DVC was gone. We still owe a small amount. Our Attorney said we could keep it. I was shocked. If we had it completely paid off...it would have been gone. Go figure.

Because we still owed on the contract, it was considered a liability and not an asset. Bankruptcy court looks as DVC as just another timeshare and would rather not deal with liquidating it. They assume the value compared to the debt is not even close.

We reaffirmed the debt and are keeping our DVC. We did not want to go through bankruptcy, but had no choice. Keeping our DVC was the one and only bright spot in the whole thing.

What was odd, DVC would not let us keep our payments current while the reaffirmation agreement was being processed. I was shocked...I said..please...take my money. they wouldn't until they had the filed agreement in hand. Then we paid what they wouldn't take before...no late charges. They were very good about it!

If you still owe on your contract, even a small amount...you can probably keep it. They question is...is it in your budget once your bankruptcy is complete.

If you have more questions, please feel free send me a PM.

 

[disney gadabout]

I got the impression from reading the OP that she was looking to pick up a cheap "distress sale" from someone who filed for bankruptcy, and was looking for a web site to do so.

 

[dianeschlicht]

I got the impression from reading the OP that she was looking to pick up a cheap "distress sale" from someone who filed for bankruptcy, and was looking for a web site to do so.

That was my impression as well, and there is no way Disney would let a contract go past ROFR if it is too cheap.

 

[manning]

Before you assume you need to get rid of DVC....look at your circumstances.

We just went through this. We assumed our DVC was gone. We still owe a small amount. Our Attorney said we could keep it. I was shocked. If we had it completely paid off...it would have been gone. Go figure.

Because we still owed on the contract, it was considered a liability and not an asset. Bankruptcy court looks as DVC as just another timeshare and would rather not deal with liquidating it. They assume the value compared to the debt is not even close.

We reaffirmed the debt and are keeping our DVC. We did not want to go through bankruptcy, but had no choice. Keeping our DVC was the one and only bright spot in the whole thing.

What was odd, DVC would not let us keep our payments current while the reaffirmation agreement was being processed. I was shocked...I said..please...take my money. they wouldn't until they had the filed agreement in hand. Then we paid what they wouldn't take before...no late charges. They were very good about it!

If you still owe on your contract, even a small amount...you can probably keep it. They question is...is it in your budget once your bankruptcy is complete.

If you have more questions, please feel free send me a PM.

Maybe!!!!!!

As of next week there will be new rules under a new law. This sight may clarify some things

http://ezinearticles.com/?The-New-Bankruptcy-Law-Means-Test-Explained-in-Plain-English&id=74968

 

[Joni]

thanks for the information. Its not me that is filing but know someone who is and called and asked if it was paid off and it is. Usually having something paid off is a good thing. They hate losing it but these things happen. I knew Disney would get first crack at it just wasn't sure it all worked.

 

[Dean]

thanks for the information. Its not me that is filing but know someone who is and called and asked if it was paid off and it is. Usually having something paid off is a good thing. They hate losing it but these things happen. I knew Disney would get first crack at it just wasn't sure it all worked.

Are you interested in buying it? There are some creative and legal ways you could make this work to your and their advantage.

 

[buzz5985]

My first resale purchase, HH 150 points, was from a couple declaring bankruptcy in Canada. We paid the going rate.

Janis