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How to Handle Timeshares in Bankruptcy and the Concept of Ongoing, Post-Petition Maintenance Fees

Financial Relief Law Center
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For those of you with timeshares, how we treat them in bankruptcy depends on several factors:
  • What is your goal with the timeshare and do you want to keep it or get rid of it;
  • Do you actually own a portion of the real property as a fractional deeded ownership interest or is it a leasehold interest that only gives you the right to use of the property at a certain time with no ownership;
  • What Chapter of bankruptcy are you contemplating or have you filed.

Once we know a little bit more information about you, we can guide you as to how to protect your interests.  Generally, you may be able to reject the lease or intend to sell it and discharge obligations prior to filing but you may continue to be liable for post-petition (after you file) costs and expenses related to ongoing maintenance fees until you transfer your ownership or until it forecloses.  With that being said, if you intend to get rid of the timeshare, you may not want to sit on it and think your obligation is wiped out just by filing bankruptcy because there may be future potential ongoing maintenance obligations.  You may need to be proactive and transfer your interest through foreclosure or selling your interest in the timeshare to prevent ongoing obligations with maintenance fees

If you have an interest in a timeshare, make sure we know about it so we can provide you with the right legal guidance.
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