How To Walk Away (Renee) From a Paid-for Timeshare

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Presented to stimulate discussion.

1. Start an LLC. ($104 in Missouri, with everything needed being available
online.)
2. Deed your timeshare(s) over to the LLC. (Maybe $30 in recording fee, per
timeshare.)

What are you looking for now (?), you're done.

So what if the LLC gets sued or there is a judgement against it; you gave it no assets or bank account. You are no longer personally liable.

[dougp26364 Senior Member Find all posts View Profile Close dougp26364]

Unless the LLC was designed strictly as a measure to defraud someone or an entitiy (such as a timeshare HOA). I'd almost bet that you could find yourself in an expensive and tight situation somewhere down the line if it could be proven that the LLC was started with the sole purpose of shifting liabilities for the purpose of defaulting on them.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

OK, then start it for another reason.

Then, down the road a piece, deed your timeshares to it.

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

OK, then start it for another reason.

Then, down the road a piece, deed your timeshares to it.

Very doubtful that would stand if challenged. As I understand (and I'm not a lawyer and only play one occasionally on threads such as this) an action such as this would suffice to "pierce the liability veil" around the other entity and expose the assets of the owner(s) to the creditors.

[mshatty Super Moderator Find all posts View Profile Close mshatty]

Unless the LLC was designed strictly as a measure to defraud someone or an entitiy (such as a timeshare HOA). I'd almost bet that you could find yourself in an expensive and tight situation somewhere down the line if it could be proven that the LLC was started with the sole purpose of shifting liabilities for the purpose of defaulting on them.

Very doubtful that would stand if challenged. As I understand (and I'm not a lawyer and only play one occasionally on threads such as this) an action such as this would suffice to "pierce the liability veil" around the other entity and expose the assets of the owner(s) to the creditors.

A piercing liability theory called sham to perpetrate a fraud in order to make an individual personally liable for corporate/LLC debts.

[Jya-Ning Silver Contributor Find all posts View Profile Close Jya-Ning]

I am at total loss here

I think I accident get to a wrong planet

Jya-Ning

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

A piercing liability theory called sham to perpetrate a fraud in order to make an individual personally liable for corporate/LLC debts.

And the penalty would be more than a bar of soap in the mouth.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Well, I certainly would not want my veil pierced.

Asking from another angle, that of the HOA considering the expense involved in litigating against an owner (or group of owners), who (which) would you rather be facing, an (group of) individual(s), or a (group of) LLC(s)?

[Carolinian Super Moderator Find all posts View Profile Close Carolinian]

Most HOA's are not going to get into anything more complex than a simple foreclosure, which costs their budgets enough as it is.

Most sensible HOA's quietly take deedbacks if asked, but wisely do not publicize this. That saves the much high costs and longer time period of foreclosure and is a win-win in a bad situation for both parties.

There are more creative deeding options than this, which can really screw up a title beyond repair, but I am not going to go into the details since I don't want to encourage such things. However, my late uncle was confronted with a small, almost worthless piece of land that his political adversaries in city hall learned that he owned and started mowing it and sending him the bill, although not mowing similar property on either side. To get rid of this headache he did some real creative deeding, that has been cited in Continuing Legal Education courses, and his former law partner still gets comments on it twenty some years later.

[mshatty Super Moderator Find all posts View Profile Close mshatty]

Well, I certainly would not want my veil pierced.

Asking from another angle, that of the HOA considering the expense involved in litigating against an owner (or group of owners), who (which) would you rather be facing, an (group of) individual(s), or a (group of) LLC(s)?

Cost is all the same. You just put them all in one basket and sort it out.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

So you are saying that if you were on the HOA, and were deciding who to litigate against, those owned by LLCs (or otherwise complicated) would not concern you more than those own by real people?

Or, in any situation, the fact that collection would be problematic and expensive would not enter into your decision to sue someone?

C'mon, every decision of this nature has a gain v. cost factor.

Carolinina appears to be more realistic, that HOAs do take things like that into consideration. Of course, then, he has experience of that nature, so it is more than conjecture with him.

Cost is all the same. You just put them all in one basket and sort it out.

[mshatty Super Moderator Find all posts View Profile Close mshatty]

So you are saying that if you were on the HOA, and were deciding who to litigate against, those owned by LLCs (or otherwise complicated) would not concern you more than those own by real people?

Or, in any situation, the fact that collection would be problematic and expensive would not enter into your decision to sue someone?

C'mon, every decision of this nature has a gain v. cost factor.

Carolinina appears to be more realistic, that HOAs do take things like that into consideration. Of course, then, he has experience of that nature, so it is more than conjecture with him.

What I'm saying is that if a decision is made to litigate a collection matter, you go after everyone you think is liable. Sorry, that's just the way it is. Why would a HOA not do it if they make a decision to file a lawsuit to collect the debt? It needs to find a person who can pay the debt. Your suggested scheme of avoiding debt is easily discovered before filing suit and adding an individual's name to a lawsuit is very simple.

I've been doing suing folks who have tried your scheme for 25 years and have great experience of that nature, so it is more than conjecture with me.

I agree with Carolinian that most HOAs are not going to go this route.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

OOH!

Well, don't get your panties in bunch!

Sue away!

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

Speaking of attornies, when I was at Moo U, it was generally assumed that that is what I would be, but I didn't take that route.

My dad was a successful and respected businessman who dealt with attornies all his adult life. At the end he was in need of one, and I was the son to bring one to him. One of the last things Dad said to me was, "You can have too many of them." He had that smartass smile and quip I seem to have inherited.

Last week it was six years since he left . . . but, sure enough, the attornies are still at it, the latest now in the process of being hired.

I've always wanted a personal family attorney. Just a decent, straight-forward, honest, reliable person you could count on when you needed them, someone you could call and say, "Take care of this," and not have to worry about it further.

I've had occasion to deal with several attornies the past five years and have not run into one like that yet.

[cancundish Junior Member Find all posts View Profile Close cancundish]

My parents own 6-7 timeshares and since they spend 4 months at their lake house and 8 months in florida on the water their need has decreased. They are still at a place where they can afford the fees but, don't need them.

He asked me for help in selling two. One is a white week in Texas the other is a red week 26 near New Orleans.

The texas week has always traded fine as it was xmas week. However as it is white and is not branded I advised there was little to no value for it on the market place. I called the resort asked if they would take it back as mfees were paid up this year. As a board they decided to take it back. I am assuming they think they can resell it or that they can make it work. Thus that was taken care of quite easily.

The other week is actually a great trader and has tremendously low fees. We will probably give that one to a friend or someone in the family.

you don't always have to create an llc to get rid of a week.