For those individuals or businesses who want to start fresh by forgiving debts, filing for bankruptcy might be the solution. These debts can't be paid while offering creditors a chance to obtain some measure of repayment based on what assets are available. In the US, many companies file for bankruptcy because of the struggling economy. One of these is the Island One Inc. and five of its affiliates citing falling sales and declining property values. One of the issues face by such companies is the increasing number of owners trying to get out of their timeshares because of the difficulty paying the fees.
Island One and its affiliates have developed and managed timeshare resorts in Florida and the US Virgin Islands since 1981. Through Navigo Vacation Club, these companies have developed a timeshare network that extends throughout the US, Latin America, the Caribbean and Europe.
Meanwhile, the said company listed both its assets and debt in the range of $100 million to $500 million in Chapter 11 documents which was filed last Sept. 10 in US Bankruptcy Court in Orlando. According to the lawyers of Island One, the fall of the real estate markets in Florida and throughout the US and the general downturn in the economy have significantly impacted the resort development and hospitality industries.
The vacation industry is greatly affected by the economic decline since it broke up in the late of 1997. On the other hand, the ability to file for bankruptcy can benefit an overall economy by giving persons and businesses another chance and providing creditors with a measure of debt repayment. This is what some of the timeshare companies are doing right now.