If your timeshare company goes bankrupt, you may be worried. Will they close the doors to your timeshare? Will you get any money back that you may have paid in advance of future holidays? A bankrupt timeshare company can be a worry.
The best case scenario is that someone takes over management of the resort, in which case everything can continue as normal. However, you may be required to sign a new contract to bind you under the new management. If this is the case then you are not necessarily under any obligation to sign. If pressure is put on you to do so, seek timeshare legal advice prior to signing and read the contract thoroughly, a lot of new contracts have clauses to avoid you pursuing a compensation claim.
If you remain happy with your timeshare, then signing the new contract may be preferable to you. However, make sure you stop and check the new contract before committing your signature to the bottom line. Again, seeking advice from experts in timeshare law is a good idea, just in case this new contract has any hidden nasties lurking inside.
In a less positive scenario, there may be no buyer for the resort and it will simply close. This is unlikely but could be a devastating blow to those who have paid thousands for their holidays at the timeshare resort. Of course, going bankrupt means that the resort has no money anymore, so you cannot expect money to come back to you through the company directly.
If you have an insurance policy that covers your timeshare, then you need not worry. If you paid for your timeshare on credit card or through a loan, then you will most probably be covered against such an event. Also check other insurance policies you may own, as there may be a clause in there which can help you.
The worst case scenario is that you do not have any of the options above. In that case, it’s extremely important you seek legal counsel straightaway. A specialist in timeshare law, like our team at Timeshare.Lawyer, will help get the answers you need and, hopefully, recoup that lost money so you can get on with your life timeshare-free.