Timeshare and Bankruptcy -- How to Get Out of a Timeshare

Getting Out of a Timeshare Through Bankruptcy

Timeshare obligations can be addressed in bankruptcy because the timeshare agreement is typically an executory contract:

• Rejection under Section 365: You can reject the timeshare contract, treating it as a pre-petition breach. Future maintenance fees and assessments stop.
• Discharge of deficiency: Any remaining loan balance on the timeshare purchase is dischargeable unsecured debt.
• HOA assessments: Pre-petition timeshare HOA fees are dischargeable. Post-petition fees may not be, depending on when you reject the contract.
• Deed-back alternative: Some timeshare companies accept a deed-back (voluntary surrender) outside bankruptcy, which avoids the filing entirely.