Time shares are not a good fit with personal bankruptcy and you should consider using your bankruptcy to surrender your interest in time shares and cancel your future obligation to the lender.
As I discuss in this video, bankruptcy trustees generally view time shares as luxury spending, not necessary for your financial rehabilitation. Whatever money you allocate towards monthly or annual maintenance costs could be used to pay creditors and many trustees will file a “good faith” objection to your case.
Further, because time shares have some market value (although they are most likely worth less than what you paid), you have to use some of your exemption to shelter that value if you want to keep your interest.
As of 2018, Georgia’s exemption law allows you to protect up to $1,200 of value as a “wildcard” exemption and up to $10,000 of unused real estate exemption for any property (note that is misstated the exemption limits in this video). These wildcard exemptions are what you would use to protect your time share. If you use your wildcard exemptions to protect your time share, you can’t use the wildcard to protect other valuable assets like a car, jewelry or electronics.
Since bankruptcy is about starting over and eliminating unnecessary expenses, I generally advise my clients to cancel time share contracts and walk away.
If you have a different opinion, please comment below.
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