Getting Out of Timeshare Debt Through Bankruptcy

If you’re stuck with a timeshare you can’t afford, you aren’t alone. Timeshares are a multi-billion-dollar industry, and countless people are in the exact same situation. If you’re thinking about bankruptcy to get out of timeshare debt, you may have a lot of questions and worries.

Fortunately, our firm has worked on this issue for decades. We’ve helped hundreds of people get out of timeshare debt, and we can help you, too.

How Debt from Timeshares Starts

Timeshares promise a stable vacation plan for generations, but the reality looks much different.

In general, these programs cost an enormous amount in upfront deposits, then take thousands in maintenance fees and upgrade costs. Often a lifelong commitment, they can wind up with no value at all and leave families desperate. 

Families all over America buy into these programs. 7.1% of U.S. households, or about 9.6 million people, now own one or more timeshare weeks. In large part, that’s because salespeople use extreme tactics, including keeping you in meetings for hours and even outright lying.

Many of these tactics prey on people who need vacation the most: folks who aren’t financially stable and/or aren’t prepared to take on a lot of debt. 

A lot of people feel ashamed for falling for a timeshare scam. If you’ve come into debt because of timeshare, it’s important to remember you aren’t alone and shouldn’t feel embarrassed. In fact, 85% of people regret their timeshare purchase. This is a far more common problem than people realize. 

The Pain of Trying to Get Out

People burdened with expensive timeshares can feel totally trapped. The maintenance fees can cost thousands of dollars a year, and that debt passes on to the person’s children, even if they can’t afford it.

Because it’s a lifelong commitment, it can be incredibly hard to leave. In fact, many timeshares are available for sale online for $0. Some people have tried calling the company to see if they can return it, only to find out there’s no real option for doing so. 

Then there’s the additional debt from trying to get out of the contract.

Organizations that promise to get you out of timeshares cost anywhere from $3000-$15000. And unfortunately, many of these companies are straight-up scams. The Better Business Bureau has even recommended you avoid the industry completely. 

Getting Out of a Timeshare

So that leaves you in a difficult position. If you can’t pay back the debt, you need to get rid of the timeshare. But the companies that promise to get you out could take all your money and not deliver.

Fortunately, bankruptcy offers a path forward that can actually leave you better off. 

First, a Chapter 7 resolves all your debt, so you can surrender your timeshare as part of the bankruptcy and be done with the whole thing. In addition, because it’s backed by the courts, the timeshare companies can’t pull any tricks to make you stay. They have to accept the outcome. 

But what if you want to keep your timeshare?

Generally courts don’t recommend keeping timeshares in a bankruptcy, and I don’t recommend it either. That said, most people don’t want to keep them, because after a while you realize there are much better ways to invest your money.

Once you let go of this heavy debt, you can rebuild your life (and your credit). Our team, and our popular free report called Life After Bankruptcy, can help.

A Memphis Bankruptcy Attorney to Get Out of Timeshare Debt

Bankruptcy is far cheaper than any program to get out of timeshare; and it’s never a scam. What’s more, through bankruptcy, you can also get rid of your others debts so you get a real chance to start over.

So what should you look for in an attorney?

You want a lawyer experienced with the bankruptcy courts in your area, and especially with timeshares. We’ve helped thousands of people get out of debt in Memphis, many of whom had timeshare debt.

But perhaps just as important, you want someone who won’t judge or shame you for your decision. With this being such a common problem, no one should feel ashamed except the companies that prey on people. Instead, your attorney and their team should be known for their compassion and kindness.

It’s something our clients love about Darrell Castle & Associates – and it’s how we’ve won multiple awards for client satisfaction.

You don’t have to live with this heavy anchor of timeshare debt. For a free consultation, no strings attached, call us today at 901-327-2100 or fill out the form below.

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