Timeshares and Bankruptcy: What You Need to Know

Timeshares are one of the most confusing and frustrating debts people bring into bankruptcy. Many owners want out, but are told they are “stuck forever.” Bankruptcy can help — but how it helps depends on the type of timeshare, how it’s financed, and which chapter you file.

This page explains:

• How timeshares are treated in bankruptcy

• Whether you can get rid of a timeshare

• What happens to maintenance fees

• Common mistakes to avoid

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First: What Kind of Timeshare Do You Have?

Not all timeshares are treated the same in bankruptcy.

1️⃣ Deeded Timeshares (Real Property)

• You own a recorded interest in real estate

• Often treated like a small piece of real property

• Harder to walk away from

• May involve foreclosure or deed-in-lieu issues

2️⃣ Non-Deeded / Right-to-Use Timeshares

• You have a contract, not real ownership

• Easier to discharge and walk away from

• Common with points-based systems

Knowing which type you have is critical.

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Can Bankruptcy Get Rid of a Timeshare?

Short Answer

👉 Yes, bankruptcy can often eliminate your obligation — but not always the ownership automatically.

This is where people get tripped up.

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Timeshare Loans in Bankruptcy

If You Financed the Purchase

Timeshare purchase loans are usually:

• Unsecured or undersecured

• Fully dischargeable in bankruptcy

Bankruptcy can:

• Eliminate the loan balance

• Stop collection and lawsuits

• End personal liability

However, discharging the loan does not always remove the ownership interest.

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Maintenance Fees and Bankruptcy (Big Issue)

Past-Due Maintenance Fees

• Usually dischargeable in bankruptcy

Future Maintenance Fees

This depends on the chapter and the contract.

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Chapter 7 Bankruptcy

In Chapter 7:

• You can usually discharge past-due fees

• You may still be billed for future fees unless:

  • The timeshare is properly surrendered, AND

  • The contract is rejected

This is why timeshare cases must be handled carefully.

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Chapter 13 Bankruptcy

In Chapter 13:

• Past-due fees can be handled through the plan

• Future fees may still accrue unless the contract is rejected

• Chapter 13 may give leverage to force an exit in some cases

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The Key Legal Tool: Contract Rejection

Timeshare contracts are usually executory contracts.

Bankruptcy allows you to:

• Reject the timeshare contract

• Stop ongoing contractual obligations

• Treat damages as dischargeable debt

Rejection does not force the resort to take the timeshare back — but it does cut off personal liability.

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“Surrender” vs. “Getting Rid of” a Timeshare

This is one of the biggest misconceptions.

Surrender Means:

• You give up your rights

• You stop using the timeshare

• You stop paying

Surrender Does NOT Mean:

❌ The resort must accept it
❌ Your name is instantly removed from records

Bankruptcy removes your obligation, not the resort’s business practices.

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Can the Trustee Take or Sell a Timeshare?

Usually:

• Timeshares have little or no resale value

• Trustees often abandon them

• Trustees are rarely interested in selling timeshares

But they must still be properly disclosed.

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Common Timeshare Myths

“Bankruptcy won’t help with timeshares.”
False — it often does.

“I have to keep paying maintenance fees forever.”
Not always — liability can often be cut off.

“I should transfer it to someone else before filing.”
Dangerous — this can create fraudulent transfer problems.

“Timeshare exit companies are safer than bankruptcy.”
Often false — many are scams or cause more damage.

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What NOT to Do With a Timeshare Before Bankruptcy

❌ Do not transfer it to family or friends
❌ Do not pay large fees hoping it will help
❌ Do not use “exit companies” without legal advice
❌ Do not stop disclosing it

Timeshares cause more harm from bad advice than from bankruptcy itself.

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When Bankruptcy Is Often the Best Option

Bankruptcy is often the cleanest solution if:

• The timeshare is unwanted

• Maintenance fees keep rising

• There is no resale market

• You are being sued or harassed

• The loan is underwater

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The Bottom Line

Timeshares are not “forever” — but getting out requires the right legal approach.

Handled correctly, bankruptcy can:

• Eliminate loan balances

• Discharge past-due fees

• Cut off personal liability

• Stop harassment and lawsuits

Handled incorrectly, timeshares can linger for years.

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Talk to a Bankruptcy Attorney Before Taking Action

Timeshare cases are highly technical, and generic advice is often wrong.

Ginsburg Law Group helps clients:

• Analyze timeshare contracts

• Use bankruptcy to exit safely

• Avoid fraudulent transfer issues

• Stop timeshare collection permanently

👉 Contact us today for a free consultation if a timeshare is part of your debt problem.

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Can I Stop Paying Timeshare Maintenance Fees?

Short answer: Sometimes yes — but how you stop paying matters.

Many people stop paying timeshare fees out of desperation, only to find themselves facing:

• Collections

• Lawsuits

• Credit damage

• Ongoing liability

Bankruptcy can often stop maintenance fee obligations — but only if done correctly.

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What Happens If I Just Stop Paying?

If you stop paying without legal protection:

• The resort may send collections

• Fees continue to accrue

• Interest and penalties grow

• You may be sued

• Credit damage can occur

Stopping payments alone does not end liability.

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How Bankruptcy Can Stop Timeshare Fees

Chapter 7 Bankruptcy

In Chapter 7:

• Past-due fees are usually dischargeable

• Ongoing obligations may be eliminated if:

  • The contract is rejected, AND

  • You surrender the timeshare interest

This cuts off personal liability, even if the resort keeps billing.

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Chapter 13 Bankruptcy

In Chapter 13:

• Past-due fees can be addressed in the plan

• Contract rejection can stop future liability

• Gives time and leverage to exit cleanly

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Important Reality Check

Stopping payment is safest when:
✔ It’s paired with bankruptcy protection
✔ The contract is properly handled
✔ You are prepared for billing attempts

Stopping payments without a plan often makes things worse.

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Key Takeaway

Yes, you may be able to stop paying timeshare fees — but only with legal strategy, not silence.

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Timeshare Exit Companies vs Bankruptcy

What Actually Works?

Timeshare exit companies promise a fast escape — but many people end up worse off.

Here’s how exit companies compare to bankruptcy.

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Timeshare Exit Companies

What They Promise

• Guaranteed exit

• No bankruptcy

• Quick results

What Often Happens

❌ Large upfront fees ($3,000–$10,000+)
❌ No legal authority to force acceptance
❌ Credit damage while they “negotiate”
❌ Some are scams or shut down mid-process
❌ Timeshare still legally yours

Many resorts simply ignore them.

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Bankruptcy

What Bankruptcy Can Do

✔ Eliminate loan balances
✔ Discharge past-due fees
✔ Reject the contract
✔ Stop lawsuits and collections
✔ Provide court protection

What Bankruptcy Cannot Do

⚠️ Force the resort to love you
⚠️ Instantly change resort records

But it cuts off your liability — which is what matters.

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Key Difference

Exit companies rely on hope and pressure.
Bankruptcy relies on federal law and court orders.

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Key Takeaway

If you qualify, bankruptcy is often faster, cheaper, and legally enforceable compared to exit companies.

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Deeded vs Non-Deeded Timeshares Explained

Why It Matters in Bankruptcy

Understanding what you actually own determines how bankruptcy helps.

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Deeded Timeshares

What They Are

• Recorded real estate interest

• Appears on property records

• Treated like real property

Bankruptcy Impact

• Loan can be discharged

• Ownership may still exist until foreclosure

• Trustee usually abandons due to low value

• Contract rejection cuts off personal liability

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Non-Deeded / Right-to-Use Timeshares

What They Are

• Contractual right, not ownership

• Points-based or membership systems

Bankruptcy Impact

• Easier to reject

• No real estate interest

• Past-due fees discharged

• Future liability usually eliminated

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Why This Distinction Matters

Deeded timeshares:

• Feel “stickier”

• Scare people unnecessarily

Non-deeded timeshares:

• Often easier exits

In both cases, liability can usually be eliminated with proper bankruptcy handling.

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Key Takeaway

Ownership type affects the process, not your right to relief.

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 Timeshare and Bankruptcy Decision Chart

Use this as a general guide, not legal advice.

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Step 1: Do You Have a Timeshare Loan?

⬇️ Yes
✔ Loan likely dischargeable

⬇️ No
→ Step 2

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Step 2: Are You Behind on Maintenance Fees?

⬇️ Yes
✔ Past-due fees usually dischargeable

⬇️ No
→ Step 3

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Step 3: Is the Timeshare Deeded?

⬇️ Yes
⚠️ Ownership may linger, but liability can end

⬇️ No
✔ Easier exit through contract rejection

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Step 4: Bankruptcy Chapter

⬇️ Chapter 7
✔ Discharge debt
✔ Reject contract
✔ Surrender interest

⬇️ Chapter 13
✔ Handle arrears
✔ Reject contract
✔ Stop future liability

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Step 5: Avoid These Mistakes

❌ Using exit companies without advice
❌ Transferring the timeshare
❌ Continuing to pay hoping it helps
❌ Hiding the timeshare

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Final Outcome

✔ Loan eliminated
✔ Past fees discharged
✔ Personal liability stopped
✔ Collections ended

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Final Reassurance

Timeshares are designed to feel permanent — but they are not immune from bankruptcy law.

Handled correctly, bankruptcy can:

• Stop the financial bleeding

• End harassment

• Give you a clean exit

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Talk to a Bankruptcy Attorney Before Taking Action

Timeshare cases are highly technical, and bad advice is common.

Ginsburg Law Group helps clients:

• Exit timeshares safely

• Avoid fraudulent transfer issues

• Stop maintenance fee liability

• Use bankruptcy strategically

👉 Contact us today for a free consultation if a timeshare is part of your debt problem.

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Can I Get Out of My Timeshare?

Often, yes — but not by simply walking away or trusting promises.
Timeshares are designed to feel permanent, but they are not immune from contract law or bankruptcy law.

The key question is how you exit — not whether it’s possible.

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First: What Type of Timeshare Do You Have?

1️⃣ Deeded Timeshare (Real Estate)

• You own a recorded interest in property

• Often comes with perpetual maintenance fees

• Harder to exit, but liability can still be ended

2️⃣ Non-Deeded / Points-Based Timeshare

• You own a contractual right, not property

• Much easier to exit

• Common in modern systems

This distinction matters — but both can be addressed.

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Common (But Risky) Ways People Try to Get Out

❌ Just stopping payment
❌ Transferring it to a friend or family member
❌ Paying an exit company thousands upfront
❌ Hoping the resort will “take it back”

These approaches often lead to:

• Lawsuits

• Credit damage

• More fees

• No real exit

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Legitimate Ways to Get Out of a Timeshare

Option 1: Resort Take-Back or Deed-in-Lieu (Rare but Possible)

Some resorts have official surrender programs.

• Usually limited

• Often require fees

• Not guaranteed

Always get terms in writing.

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Option 2: Bankruptcy (Most Reliable Legal Exit)

Bankruptcy can:
✔ Eliminate timeshare loans
✔ Discharge past-due maintenance fees
✔ Reject the timeshare contract
✔ Stop future personal liability
✔ End lawsuits and collections

This works for both deeded and non-deeded timeshares, when handled correctly.

Bankruptcy doesn’t make the resort happy — it makes the debt unenforceable.

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Option 3: Foreclosure (Deeded Timeshares Only)

Some deeded timeshares eventually foreclose.

• This can take years

• Fees may accrue

• Credit damage may occur

Bankruptcy often cleans this up faster and more safely.

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Timeshare Exit Companies vs Reality

Many “exit companies”:

• Charge $3,000–$10,000+ upfront

• Have no legal power

• Rely on you defaulting

• Leave you exposed if they fail

Bankruptcy is:

• Court-backed

• Enforceable

• Often cheaper overall

• Permanent

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Can Bankruptcy Really Stop Future Fees?

Yes — if done correctly.

Key steps include:

• Properly disclosing the timeshare

• Rejecting the contract

• Surrendering the interest

• Handling the loan (if any)

Done wrong, fees can linger.
Done right, liability ends.

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The Most Important Warning

❌ Do not transfer your timeshare before getting legal advice.
That can create fraudulent transfer problems and make things much worse.

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The Bottom Line

✔ Yes, many people can get out of their timeshare
✔ Bankruptcy is often the safest, cleanest exit
✔ Doing nothing or trusting sales pitches causes damage
✔ The details matter

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Talk to a Bankruptcy Attorney Before Taking Action

Timeshare cases are technical — and bad advice is everywhere.

Ginsburg Law Group helps clients:

• Exit timeshares permanently

• Stop maintenance fees

• Eliminate timeshare loans

• Avoid scams and legal traps

👉 Contact us today for a free consultation if you want out of a timeshare.

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PANIC: I Need Out of My Timeshare — NOW

If you’re here, you’re probably:

• Being hounded for maintenance fees

• Facing collections or a lawsuit

• Afraid your credit is being destroyed

• Considering paying thousands to an “exit company”

• Or thinking you’re stuck forever

Stop. Take a breath. You have options.

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First — Do NOT Do These Things

❌ Do not pay an exit company
❌ Do not transfer your timeshare to anyone
❌ Do not pay large fees hoping it will help
❌ Do not ignore lawsuits or collection notices
❌ Do not assume “bankruptcy won’t help”

These mistakes make things worse.

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The Truth (No Sales Pitch)

Timeshares are designed to feel permanent — but they are not immune from the law.

In many cases, bankruptcy is the fastest, safest, and most permanent way to get out.

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What Bankruptcy Can Do — Immediately

✔ Stop collections and lawsuits
✔ Eliminate timeshare loans
✔ Discharge past-due maintenance fees
✔ Reject the timeshare contract
✔ Cut off future personal liability

This is federal court protection — not a negotiation.

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What Bankruptcy Does NOT Require

❌ You do NOT need resort approval
❌ You do NOT need to “sell” the timeshare
❌ You do NOT need to keep paying
❌ You do NOT need an exit company

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“But I Was Told Timeshares Can’t Be Discharged”

That’s wrong — or dangerously incomplete.

What matters is:

• Whether the contract is rejected

• Whether liability is cut off

• Whether it’s handled correctly

Done right, you stop owing — even if the resort keeps sending bills.

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If You’re Being Sued or Threatened

👉 Do not wait.
👉 Do not respond alone.
👉 Deadlines matter.

Bankruptcy can stop the lawsuit immediately — but timing is critical.

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If You’re About to Pay an Exit Company

Pause.
Many clients come to us after paying $5,000–$10,000 and still being stuck.

Bankruptcy is often:

• Cheaper

• Faster

• Legally enforceable

• Permanent

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Bottom Line (Read This Twice)

✔ Yes, many people can get out of their timeshare
✔ Bankruptcy is often the cleanest exit
✔ Panic leads to expensive mistakes
✔ Talking to a lawyer first saves money and stress

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Get Real Help — Now

If a timeshare is ruining your finances or peace of mind, you do not have to handle this alone.

Ginsburg Law Group helps clients:

• Get out of timeshares permanently

• Stop maintenance fees and lawsuits

• Avoid exit-company scams

• Use bankruptcy strategically and safely

👉 Contact us NOW for a confidential consultation.