Club la Costa has filed for voluntary bankruptcy. What is next to come?

Club La Costa has filed for voluntary bankruptcy. This post highlights what the following procedure is likely to be for Club La Costa members.

We wrote a post on 21st October 2020 to notify Club La Costa members about the upcoming closure of Spain’s Largest timeshare resort chain. This is now been made public knowledge. Club La Costa filed for voluntary bankruptcy on 03 January 2021.

When we wrote the post to warn Club La Costa owners back in October, Club La Costa emailed all their clients informing them that they had only closed the sales department and that there was nothing to worry about. They also informed customer that would allow their members to give back their timeshare free of charge. Giving a timeshare back voluntarily, usually waives any rights of submitting claims later down the line.   

What is the next step for Club La Costa owners!

We can only advise clients based purely on patterns seen with other timeshare resorts that have declared bankruptcy in recent years, such as Silverpoint Resorts in Tenerife.

Owners will now need to sit tight. Just because Club La Costa have declared bankruptcy, it does not mean that you no longer own your timeshares. 

When you buy a timeshare in Europe, you sign two agreements. One agreement is the documentation that you sign for the purchase of the ownership. The second agreement is with the company that maintains the timeshare resort. 

In this case, the company that sold the timeshare are the ones that have declared voluntary bankruptcy. However, the company that maintain the grounds have not. You have a signed agreement with this company agreeing to pay your share in maintaining the property for the duration of your contract. In return for doing so you receive x amounts of weeks of accommodation to use, subject to availability. It is the words subject to availability that allows them to still legally charge you maintenance. It just so happens that currently the accommodation is not available.  

You will now need to wait to see if the administrators can find a new company to take over the resort. This can take some time. Failing to find someone to take over the resort, all assets will need to be liquidated to cover the company’s debts. The process can take months or even years. 

Can I claim compensation

Fill out our online compensation calculator to find out if you are eligible to claim compensation or terminate your timeshare agreements. 

If you would like to speak to a special regarding timeshare claims advice. Timeshare Claims Advice offer a FREE timeshare consultation. Due to the high demand in timeshare owners wanting to relinquish their timeshares or claim compensation, our FREE consultations are limited to one per timeshare member.

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