Bankruptcy and

Disney Vacation Club

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Disney Vacation Club (DVC) Timeshares and Bankruptcy:

What You Need to Know

Disney Vacation Club (DVC) timeshares are often marketed as premium, protected, and different from other timeshares. Many owners are told:

“You can’t get out of Disney.”
“Bankruptcy won’t help with DVC.”
“Disney will chase you forever.”

That is not accurate.

Disney Vacation Club interests are subject to the same bankruptcy laws as other timeshares, with some important nuances.

This page explains how DVC is treated in bankruptcy, what usually happens, and what mistakes to avoid.

First: What Is a Disney Vacation Club Interest?

DVC is typically:

A deeded real estate interest
Governed by a membership agreement
Subject to annual dues (maintenance fees)
Often financed through Disney-affiliated loans

That means a DVC interest is usually:

Property in bankruptcy
An executory contract
A debt + ownership combination

Can Bankruptcy Get Rid of a Disney Timeshare?

Short Answer

👉 Yes — bankruptcy can eliminate your personal liability for a DVC timeshare, including:

Purchase loan
Past-due dues
Future maintenance fee liability (when handled correctly)

What bankruptcy does not do is force Disney to “take it back nicely.”
What it does do is make the debt legally unenforceable against you.

Disney Timeshare Loans in Bankruptcy

If you financed your DVC purchase:

✔ The loan is usually dischargeable
✔ Bankruptcy stops collection and lawsuits
✔ You are not required to keep paying

Disney loans are not special priority debts.

Maintenance Fees and DVC Bankruptcy Treatment

Past-Due Dues

✔ Usually dischargeable

Future Dues

This is where proper handling matters.

In bankruptcy, your attorney should:

Reject the DVC contract
Surrender the DVC interest
Cut off ongoing personal liability

If done correctly, future dues become unenforceable, even if Disney keeps sending statements.

Chapter 7 vs Chapter 13 for Disney DVC

Chapter 7 (Most Common for DVC Exit)

In Chapter 7:

Loan debt is discharged
Past-due dues are discharged
Contract is rejected
Trustee usually abandons the DVC interest (low resale value)
Disney may eventually foreclose or reclaim the interest

This is often the cleanest exit.

Chapter 13

In Chapter 13:

Arrears can be handled through the plan
Contract can still be rejected
Liability can be eliminated
Takes longer, but may be needed if Chapter 7 isn’t available

Can the Trustee Sell My Disney Timeshare?

Usually no.

Despite what Disney marketing implies:

DVC resale value is often far lower than owners expect
Trustees look at net benefit after fees
Many DVC interests are abandoned by trustees

But it must be disclosed.

“Disney Is Aggressive — Can They Ignore Bankruptcy?”

No.

Disney:

Must comply with the automatic stay
Must honor the discharge
Cannot continue collection against you personally

They may:

Continue sending statements (common)
Foreclose or reclaim ownership later

What they cannot do:
❌ Sue you
❌ Collect from you
❌ Harass you for payment

Very Important: What NOT to Do With a DVC Timeshare

❌ Do NOT transfer it to family
❌ Do NOT pay thousands to an “exit company”
❌ Do NOT keep paying out of fear
❌ Do NOT hide the DVC interest
❌ Do NOT assume Disney is “different”

Transferring a DVC interest before bankruptcy can create fraudulent transfer problems.

Disney Exit Companies vs Bankruptcy

Many companies target DVC owners with claims like:

“Disney requires special handling”
“Bankruptcy won’t work”
“We have insider Disney programs”

In reality:

They have no legal authority
Many simply tell you to stop paying
You remain legally exposed

Bankruptcy:
✔ Is enforceable
✔ Is court-backed
✔ Actually ends liability

Common Disney DVC Myths

“Disney timeshares can’t be discharged.”
False.

“Disney will blacklist me forever.”
Irrelevant legally.

“I have to sell it first.”
Not required — and often impossible.

“I’ll owe dues forever.”
Not if the contract is properly rejected.

Bottom Line

✔ Disney timeshares are not bankruptcy-proof
✔ DVC loans and dues are usually dischargeable
✔ Liability can be cut off permanently
✔ Proper handling is essential

Disney may be magical — bankruptcy law still applies.

Talk to a Bankruptcy Attorney Before Taking Action

Disney timeshare cases are very common and very fixable — but bad advice causes years of unnecessary stress.

Ginsburg Law Group helps clients:

Exit Disney Vacation Club ownership
Stop maintenance fee liability
Eliminate DVC loans
Avoid exit-company scams
File safely and strategically

👉 Contact us today for a free consultation if you have a Disney timeshare and are considering bankruptcy.

Can Disney Still Bill Me After Bankruptcy?

Short answer: Disney may continue sending statements — but they usually cannot legally collect from you once your bankruptcy is handled correctly.

This distinction is critical and often misunderstood.

Why Disney Keeps Sending Bills After Bankruptcy

After bankruptcy:

Disney may continue to generate automated statements
Statements may be labeled “informational”
Disney may wait to foreclose or reclaim the interest

This does not automatically mean you still owe the money.

What Bankruptcy Actually Stops

If your DVC timeshare is properly handled in bankruptcy:

✔ Disney cannot sue you
✔ Disney cannot collect past-due dues
✔ Disney cannot collect the loan
✔ Disney cannot pursue you personally for future dues

Your personal liability is discharged.

What Bankruptcy Does NOT Force Disney to Do

Bankruptcy does not:
❌ Force Disney to immediately take the timeshare back
❌ Require Disney to close your account instantly
❌ Prevent Disney from eventually foreclosing

Bankruptcy protects you, not Disney’s administrative process.

The Key Legal Step: Contract Rejection

For Disney DVC cases, your attorney must:

Reject the DVC membership agreement
Surrender the interest
Ensure future dues are treated as dischargeable damages

If this step is missed, Disney may argue ongoing liability.

What to Do If Disney Keeps Billing You

✔ Do not panic
✔ Do not resume payments
✔ Save all statements
✔ Forward them to your attorney
✔ Confirm the contract was rejected

In most cases, the billing stops after foreclosure or internal processing.

When Continued Billing Is a Problem

🚩 If Disney threatens lawsuits
🚩 If Disney demands payment directly
🚩 If collection agencies contact you
🚩 If Disney ignores the discharge

These may violate the discharge injunction and should be addressed legally.

Bottom Line

✔ Disney may bill
✔ Disney usually cannot collect
✔ Bankruptcy still protects you
✔ Proper handling matters

Talk to a Bankruptcy Attorney If Disney Is Still Contacting You

Ginsburg Law Group helps clients:

Stop post-bankruptcy Disney collection
Enforce discharge rights
Exit DVC ownership safely
Avoid unnecessary payments

👉 Contact us if Disney is still billing you after bankruptcy.

🚨 PANIC: I Own a Disney Vacation Club Timeshare — Help!

If you’re here, you may be:

Terrified Disney will “come after you”
Being told DVC is “different”
Paying dues you can’t afford
Considering a $5,000–$10,000 exit company
Afraid bankruptcy won’t work for Disney

Stop. Take a breath. Disney is not above bankruptcy law.

First — Do NOT Do These Things

❌ Do NOT pay an exit company
❌ Do NOT transfer your DVC interest
❌ Do NOT keep paying out of fear
❌ Do NOT ignore legal notices
❌ Do NOT assume Disney is “bankruptcy-proof”

These mistakes cost people years and thousands of dollars.

The Truth About Disney Vacation Club

✔ DVC interests are subject to bankruptcy law
✔ DVC loans are dischargeable
✔ DVC dues can be discharged
✔ Future liability can be cut off

Disney’s branding does not override federal law.

What Bankruptcy Can Do — Immediately

✔ Stop Disney collection
✔ Eliminate the DVC loan
✔ Discharge past-due dues
✔ Reject the DVC contract
✔ Cut off future personal liability

This is court-ordered protection, not negotiation.

What Disney Cannot Do

❌ Sue you after discharge
❌ Force you to keep paying
❌ Ignore the bankruptcy court
❌ Punish you legally for filing

They may foreclose — but that ends ownership, not your protection.

Why Exit Companies Target Disney Owners

Because:

DVC owners are emotionally attached
Disney feels intimidating
People are told bankruptcy “won’t work”

Exit companies have no power to do what bankruptcy already does legally.

Bottom Line (Read This Slowly)

✔ Yes — you can get out of DVC
✔ No — Disney is not special legally
✔ Panic causes expensive mistakes
✔ Bankruptcy often works cleanly

Get Real Help — Now

Ginsburg Law Group helps Disney owners:

Exit DVC ownership
Stop dues permanently
Avoid exit-company scams
Use bankruptcy safely and strategically

👉 Contact us NOW if Disney is causing financial panic.

Disney vs Non-Disney Timeshares: Bankruptcy Comparison

Disney vs Non-Disney Timeshares — Are They Treated Differently in Bankruptcy?

Legally, no. Practically, there are a few nuances — but bankruptcy works for both.

Here’s a clear comparison.

Ownership Structure