Interesting question.
How does the timeshare appear on his credit report?
What sort of credit product is it referenced as?
How long has he had the timeshare, how much more time to run on the payments?
Well, two avenues of further review are yours to follow:
1) Determine what DD credit report shows, whether this shows up at all. I doubt that it does.
2) Read all the documentation for the Timeshare property / mortgage and see what their lien rights or confiscation rights are for the maintenance fees. They may simply forfeit the TS visit rights if you don't pay the fees.
Alternately, sell the timeshare rights for $1 to someone willing to take over the $800 yearly maintenance fees, and use the results of #2 above to cleanly and completely transfer the TS over to someone else.
@Anonymous wrote:
Don't think anyone will buy the TS because the company who owned it went bankrupt.
Ok, and the Slow Reveal continues... you didn't mention that in the opening post?
If the TS is going through bankruptcy, then there is a bankruptcy court hearing that is going to determine how the value / ownership of those TS shares is going to be handled. DD may end up with no value if the assets are sold off anyway, and the handling of the maintenance fees would need to re-start under a new ownership program, potentially a completely new TS agreement, which may or may not include a distribution of assets if any remain. I would not walk away from the TS paperwork just yet, because a lot can happen.
Contact the group that is handling the bankruptcy hearing, there should be some level of bankruptcy court filings and notice to the TS holders about what is happening. DD should have already gotten some sort of notification.
You have research to do, grasshopper. Get to it.