Timeshare Exit Companies vs Bankruptcy
A timeshare exit company is a business that charges you, usually up front, to try to cancel your timeshare. The ads say guaranteed; what they don't mention is the industry's enforcement record, the free deed-back programs many resorts already run, or that if you still owe money, an exit company usually can't help you anyway. Here's the honest comparison.
Qualifying filers may be eligible for our $999 flat fee Chapter 7.
What the ads don't say
Timeshare exit is a troubled industry with repeated state and federal enforcement. One of the best-known names behind those ads, Timeshare Exit Team, closed in 2022 after a $2.61 million consent decree with Washington State. In 2026, a federal court ordered the operator of a separate exit operation to pay more than $140 million in a case brought by the FTC and Wisconsin, and Missouri and Minnesota have taken action against others. The pattern in those cases: thousands of dollars collected up front, results that often never came, and owners left facing foreclosure anyway. Some exit services are legitimate. But you should know what you're buying before you pay roughly $3,000 to $10,000, and sometimes far more, for it.
Ask before paying an exit company
- Is there still a loan on the timeshare? Most exits can't help until it's paid off
- Does your resort already run a free deed-back program?
- Is the fee due up front, before any result?
- What exactly is guaranteed, in writing, and who refunds you if it fails?
- What happens to your credit if their plan is simply to stop paying?
When bankruptcy is the better fit
- There's still a loan or a deficiency on the timeshare
- You're behind on maintenance fees
- The timeshare debt sits on top of credit cards or medical bills
- An exit company quote costs more than a whole Chapter 7
- You want the debt legally discharged, not negotiated maybe
Common questions about Timeshare Exit Companies vs Bankruptcy
Are timeshare exit companies all scams?
No, and we won't tell you they are. Some are legitimate, and some exits work. But the industry has drawn enforcement from multiple states and the FTC over large upfront fees and undelivered results, so the burden is on the company to show you exactly what you're paying for. The questions above are a good filter.
What should I try before paying anyone?
Call your resort first. That's the FTC's advice too. Several big developers run free or low-cost deed-back programs, as of 2026 that includes Wyndham's Certified Exit, Marriott Vacation Club's exit services, Hilton Grand Vacations' Transitions program, and Holiday Inn Club Vacations' Horizons. The catch is they typically want the loan paid off and the fees current.
The resort turned me down. Now what?
That usually means there's a loan or arrears in the way, and that's precisely the situation bankruptcy is built for. Chapter 7 or Chapter 13 can discharge the timeshare loan, the deficiency, and the past-due fees, and deal with the rest of your debt at the same time, which no exit company can do.
Is bankruptcy really cheaper than an exit company?
Often, yes. State and FTC case records put typical exit fees in the thousands, paid up front. Our fees are affordable, with payment plans, qualifying Chapter 7 filers may be eligible for our $999 filing, and the result is a court-ordered discharge rather than a promise. And bankruptcy can clear your other debt in the same case.