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Re: Fairfield Problem (by Carvan A.):

jayjay wrote:

carvana wrote:

I will put my kinowledge of the timeshare industry up against yours anytime anyplace. I suspect you are an employee or developer within the timeshare industry and I understand the reason behind your advocacy.CGA

Last word .... I am not an employee or developer in the timeshare industry. I'm merely a former owner of 9 timeshare weeks and I my knowledge was earned via research, research and more research on the subject of timesharing for many years.

BTW, what am I supposed to be advocating .... paying my former maintenance fees on time and not buying a timeshare week if I knew I couldn't afford it. We paid for all of our weeks with cash, otherwise the weeks wouldn't have been bought in the first place.

What happens to a person's credit if they stop making payments on a timeshare they financed through the resort? Is that debt also written off when they decide they no longer want to pay? I seriously doubt it.

There are millions of timeshare owners, as is evidenced by the resale market, that have, in retrospect after purchasing, decided that timeshares are not for them and they honestly think they can quit paying any fees or debts to the resort or the resort's's financial services. I see it all the time when reading timeshare forums on the internet. They believe that just because it's a timeshare that it's not like any other debt they owe and they can just quit making payments. It's classic.

I agree there may be mitigating circumstances with positive proof required (aging, bad health, death etc) that some timeshare debts may be written off by a resort, but I imagine they are few and far between. The majority of non paid debts are handed over to a collection agency from what I've gathered in my years of research.

JayJay, It appears you are confused with the meaning of a debt being "written off". The debt is still due and owing after it is written off but it is no longer carried as an asset on the balance sheet due to accounting rules.

Sound accounting practices require companies to write off non performing debts. Companies whose stock is publicly traded are required by law to write off non-performing debt so as not to mislead potential investors as to the value of the company. For example, a balance sheet that showed $1,000,000 in receivables that included $500,000 in bad debts would be misleading. Thus, the $500,000 must be written off.

WritIing off a debt has absolutely nothing to do with forgiving a debt. A debt that has been written off can still be referred to a Collection Agency and/or a suit initiated against the debtor to reduce the debt to a judgment. The debt is still owed just not carried as a receivable on the balance sheet.

I hope this helps your understanding. If any additional clarification is needed, please reveal that by making additional comments on this subject.

CGA.