Getting twisted into a timeshare can be a real life lesson. Sometimes, that is what will drive people to look at bankruptcy in the first place. The simple answer as to whether or not you can file bankruptcy on a timeshare is yes. There are, however, some intricacies in including a timeshare in a bankruptcy. The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) that was enacted in 2005 made a multitude of changes to the law governing bankruptcy and it specifically addresses timeshares. The majority of folks want to get rid of or get out from under the obligation of a timeshare by including it in their bankruptcy. You can surrender a time share in either a chapter 13 or chapter 7 bankruptcy.
The best way to do this is reject it as an executory contract. The nuance here is that any maintenance fees that come due post-bankruptcy filing will continue to accrue against a debtor and the majority opinion based on BAPCPA is that they are non-dischargeable. Therefore, what we advise most of our clients to do is to immediately get in touch with the timeshare company and deed the property back to them to avoid accrual of non-dischargeable post bankruptcy fees on the timeshare.
There are a few people who may be completely up to date with all timeshare expenses and wish to retain the timeshare instead of including it in bankruptcy. Whether or not this is feasible will probably depend on where you live and what district you are filing your bankruptcy case. Therefore, it is good to get advice from competent legal counsel in your area. We have affiliated offices throughout the southeast with experienced attorneys waiting to help you.
If you are faced with a difficult financial situation, regardless of the cause, please contact our nearest office and schedule a confidential and free consultation with one of our attorneys and we can help you get relief.
Amy K Tanner is a shareholder in several of the Bond & Botes Law Offices. She holds a Bachelor of Science from Auburn University at Montgomery, and a Juris Doctorate from Thomas Goode Jones School of Law. She focuses primarily on consumer bankruptcy law in the Huntsville and Decatur offices.Read her full bio here.