Elk Run Property Owners Association: Subchapter V Timeshare Restructuring

Elk Run Property Owners Association, Inc. is a Colorado nonprofit timeshare owners association that filed for Chapter 11 relief under Subchapter V on January 20, 2026 in the U.S. Bankruptcy Court for the District of Colorado. The debtor operates the Elk Run Townhouses in Pagosa Springs, a community of 18 units organized into 936 weekly intervals, and funds operations primarily through owner assessments rather than commercial revenue. The filing frames the case as a reserve-funding restructuring for a member-owned property rather than a conventional corporate turnaround. Elk Run sits within the broader Club Wyndham Pagosa resort campus at 42 Pinon Causeway, where resort marketing materials indicate that two-bedroom deluxe suites are offered only in the Elk Run, Master Place, and Teal Landing associations. The operational objective in bankruptcy is continuity: keep the property running, keep assessments flowing, and establish a sustainable reserve funding path without destabilizing the owner base.

The resort’s multi-association structure is evident in branded listings and exchange materials that show how Elk Run is one part of a larger Pagosa Springs campus. Owner-facing resort pages list WorldMark Pagosa at the same address as Club Wyndham Pagosa, and disclosure guides list Pagosa Springs properties at 42 Pinon Causeway and in Wyndham’s resort index, underscoring the importance of uninterrupted operations for owners who rely on exchange systems. The bankruptcy therefore sits at the intersection of a member-funded governance model, aging property assets, and the owner expectations created by a branded timeshare ecosystem.

Debtor(s)	Elk Run Property Owners Association, Inc.
Case Number	26-10311-TBM
Court	U.S. Bankruptcy Court, District of Colorado
Petition Date	January 20, 2026
Property	Elk Run Townhouses (Pagosa Springs, CO)
Units / Intervals	18 units / 936 weekly intervals
Employees	None (managed by Wyndham)
Cash and A/R	~$1.70M / ~$183k
Reserve Needs	~$5.3M (2025–2029)

Restructuring Overview and First-Day Relief

Subchapter V posture. Elk Run elected Subchapter V, a Chapter 11 track designed for small business debtors with simpler capital structures and faster plan timelines. Court filings indicate the association has no secured debt, a limited creditor count, and a governance model centered on member assessments rather than external revenue streams. That profile aligns with Subchapter V’s focus on streamlined reorganization and a faster path to a court-confirmed plan. The filing is framed as a financial reset for a property-level association rather than a liquidation, with the goal of stabilizing reserve funding while preserving owner usage rights.

Why Subchapter V fits a timeshare association. A property owners association generally lacks the levers a commercial business might use to grow revenue or reallocate assets. Its revenue base is fixed: owner assessments linked to a finite number of intervals. Subchapter V is designed for debtors whose business model and creditor structure are straightforward and whose reorganization depends more on budgeting discipline than complex capital market transactions. For Elk Run, that means the case can focus on the practical mechanics of fees, reserves, and maintenance scheduling rather than elaborate debt restructuring. It also avoids the cost of a creditors’ committee, which is often a poor fit for a member-owned entity where most creditors are also owners who benefit from preserving the property.

Plan timeline and trustee role. Subchapter V imposes a faster timeline for filing and confirming a plan, typically requiring the debtor to file a plan within 90 days unless the court grants an extension. A Subchapter V trustee is appointed to facilitate plan negotiations and keep the process on track. For an association like Elk Run, this structure can create pressure to articulate a viable reserve funding plan early in the case and to communicate clearly with owners about the path forward. The trustee’s role is less about asset liquidation and more about guiding a feasible plan that balances owner affordability with the capital needs of the property.

Core objective. The first-day filings emphasize continuity of assessments, uninterrupted resort operations, and preservation of existing management and payment systems. The association has no employees and relies on a third-party management contract, so the case strategy is oriented around cash flow stability rather than labor restructuring. For owners, the case’s immediate aim is practical: keep the resort open and keep the payment and reserve systems intact while the association designs a longer-term plan to address capital repair obligations.

Joint administration with related associations. Elk Run sought joint administration with two related Pagosa Springs property owners associations, Masters Place and Village Pointe. The three cases share common ownership communities, cash management practices, and operational systems, and joint administration is intended to reduce duplicative administrative costs and allow coordinated motions. The cases remain separate entities, but the request underscores that the reserve-funding challenge is not isolated to a single association and that owners across the Pagosa Springs campus face similar structural pressures.

Plan feasibility focus. Because the association does not have traditional operating revenue, plan feasibility in this case will likely hinge on the realism of assessment levels and the timing of capital projects. A Subchapter V plan can set a binding schedule for maintenance fees, outline reserve contributions, and establish how deferred projects will be prioritized. For owners, the key question is whether the plan can fund essential repairs without pushing assessments beyond what the owner base will tolerate. The court-supervised process provides a mechanism to lock in a uniform approach across all owners, which is difficult to achieve through ordinary association votes when ownership is dispersed and participation is inconsistent.

First-day relief focused on operations and notice. The initial motions center on maintaining the existing cash management framework, limiting the public disclosure of owner information, and retaining a claims and noticing agent to manage large-volume owner communications. These requests reflect a timeshare-specific challenge: hundreds of individual interval owners are both members and assessment payers, which creates a large creditor matrix and heightened privacy concerns. The debtor’s approach is to keep the administrative backbone intact so that owner assessments can be collected and reserve accounts can be segregated while the restructuring proceeds.

First-Day Focus	Purpose
Cash management continuity	Preserve existing assessment collection, reserve segregation, and vendor payments.
PII suppression and notice controls	Protect owner privacy while ensuring notice for key case events.
Claims agent retention	Centralize notices, claims tracking, and owner communications.
Joint administration	Coordinate related POA cases to reduce procedural costs.

Organization, Governance, and Resort Structure

Nonprofit association model. Elk Run is a Colorado nonprofit property owners association formed to manage a specific timeshare subdevelopment. Court filings describe a membership structure that includes interval owners as Class A members and a developer-class member, a framework common to timeshare associations. The association’s board of directors sets maintenance budgets, oversees reserve planning, and manages collection policies. This governance structure is a key difference from conventional corporate bankruptcies: the debtor’s revenue base depends on hundreds of individual owners rather than customers or commercial tenants, and the board must balance property preservation against member affordability.

Property definition. The Elk Run Townhouses are located at 42 Pinon Causeway in Pagosa Springs. The property is part of the broader Pagosa Springs resort campus that is marketed under the Club Wyndham and WorldMark brands. Branded resort pages list the same address for Club Wyndham Pagosa and WorldMark Pagosa, reinforcing that Elk Run sits within a larger property ecosystem.

Owner-facing resort identity. The association’s property identity is shaped by resort marketing and exchange visibility as much as by its legal structure. The resort’s address appears on owner-facing pages for Club Wyndham Pagosa and WorldMark Pagosa, and the Club Wyndham Pagosa listing provides the resort phone number. Those pages emphasize the amenities and recreation that owners expect the association to maintain. A tourism listing for the resort also highlights suites and amenities, underscoring that the property is marketed as a destination with ongoing upkeep requirements. For the association, this means reserve planning is directly tied to owner experience; deferring capital projects can erode the value of the resort brand the owners rely on.\n\nGlobal resort listings. Wyndham’s international resort pages also include Pagosa Springs inventory, which illustrates the broader marketing channels that feed owner demand. The Club Wyndham South Pacific site lists a Two Bedroom Deluxe - Elk Run room type, and the Club Wyndham Asia listing includes a similar Elk Run unit type. These pages do not govern the association’s finances, but they show how the inventory is positioned across Wyndham’s branded platforms, reinforcing that Elk Run’s viability is tied to broader network visibility.

Multi-association resort structure. Public marketing materials highlight how the Pagosa Springs resort campus is subdivided across named associations and inventory types. The Club Wyndham Pagosa page notes that two-bedroom deluxe suites are available only in the Elk Run, Master Place, and Teal Landing associations, and international listings show a Two Bedroom Deluxe - Elk Run room type and an Elk Run unit type. The official WorldMark resort page also lists suite types such as Ptarmigan and Village Pointe, reinforcing the association-based inventory structure. This structure matters because it shapes owner expectations about shared amenities, resort branding, and exchange network participation. It also helps explain why the bankruptcy emphasizes continuity rather than a sharp operational pivot.

Address consistency and owner communications. Multiple resort listings use the same address and mailing information, including the RCI points guide which lists Club Wyndham Pagosa at 42 Pinon Causeway with an associated P.O. Box. The consistency across listings supports the debtor’s effort to communicate with owners and to ensure that notice procedures are tied to a single, recognizable property identity. For a timeshare association, clear identification of the property and its address is more than a marketing detail; it is central to billing, assessment collection, and the administration of owner notices during the bankruptcy process.

Resort branding and exchange networks. The resort’s presence in exchange and disclosure materials demonstrates how owners view the property as part of a broader system. The RCI points guide lists Club Wyndham Pagosa and WorldMark Pagosa at 42 Pinon Causeway, Wyndham’s disclosure update lists a Pagosa Springs resort at the same address in its resort index, and the WorldMark exchange network disclosure summary lists WorldMark Pagosa at 42 Pinon Causeway. These references are important because they highlight the value owners associate with continuity of operations and exchange eligibility.

Resort Reference	Evidence of Resort Integration
Club Wyndham Pagosa	Resort address and association-specific inventory listing.
WorldMark Pagosa	Resort address and management identification.
RCI Points Disclosure Guide	Lists Club Wyndham Pagosa and WorldMark Pagosa at 42 Pinon Causeway.
Wyndham Points Disclosure Guide Update	Resort index lists Wyndham Pagosa at the same address.
WorldMark Exchange Network Disclosure Summary	Lists WorldMark Pagosa at 42 Pinon Causeway.

Financial Model and Reserve Gap

Reserve-driven capital needs. Court filings describe a reserve study projecting approximately $5.3 million in repairs and capital improvements from 2025 through 2029. For a community with 18 units and 936 weekly intervals, that level of capital work is material when funded primarily by assessments. The association’s board concluded that fees were already elevated and that the projected increases required to fund reserves could exceed what owners could reasonably support.

Assessment structure and reserve math. The association reported total 2025 maintenance and reserve fees of about $1.21 million, equating to roughly $1,318.87 per unit week. The reserve contribution budget for 2025 was approximately $480,661, or about $524 per unit week, highlighting how a large share of each assessment is allocated to long-term capital needs rather than immediate operating expenses. Looking ahead, the board projected a 16.5% reserve increase for 2026 and 32% annual increases for 2027 through 2029, with 2026 maintenance fees projected at about $1,465.23 per unit week. Those projections were a central trigger for the restructuring decision, as they signaled sustained affordability pressure for a broad owner base.

Cash position versus long-term obligations. The association reported roughly $1.70 million in cash and cash equivalents and approximately $183,000 in accounts receivable at the time of the petition. These figures indicate that Elk Run was not facing a near-term liquidity collapse; instead, the mismatch lies between current cash and long-term capital obligations. The case therefore centers on a structural funding gap, not a sudden operational crisis, and the plan process is intended to reset expectations for assessments and reserve contributions on a sustainable basis.

Temporary measures underscored the funding gap. Court filings describe member-authorized steps intended to relieve short-term cash pressure, including suspension of 2026 maintenance fees, waiver of 2026 reserve funding, and transfers of reserve balances to operating expenses as needed. Those steps may provide immediate breathing room, but they also highlight the long-term risk: deferring reserve contributions can compound future capital needs and increase the eventual cost to owners. The Chapter 11 process gives the association a forum to align fee schedules, reserve contributions, and capital work sequencing in a way that can be implemented uniformly across a fragmented owner base.

Why reserve studies drive policy. A reserve study in a timeshare association is more than an accounting exercise; it establishes a schedule of roof, building, and infrastructure replacements that cannot be postponed indefinitely without compromising safety and guest experience. When a reserve study projects large multi-year capital needs, the association has only a few levers: raise assessments, increase collection pressure, defer projects, or seek a court-supervised restructuring that spreads costs over time. Elk Run’s case reflects that trade-off and indicates that the board viewed a court-supervised plan as the most realistic path to preserve both the physical asset and owner affordability.

Member affordability constraints. Timeshare associations must balance reserve studies with owner affordability. Even when the math suggests higher fees, owners may resist or default, which creates a negative cycle: higher fees can drive delinquencies, and higher delinquencies reduce cash flow and pressure the association to raise fees further. The Elk Run filing reflects this dynamic, with court filings describing projected increases that the board believed would be untenable for many owners. The bankruptcy process provides a forum to implement a standardized plan for fee adjustments and capital work, with the goal of avoiding a continued spiral of delinquencies and deferred maintenance.

Metric	Amount (as reported)
2025 maintenance + reserve fees	~$1.21M total / ~$1,318.87 per unit week
2025 reserve contribution budget	~$480,661 total / ~$524 per unit week
Projected 2026 maintenance fees	~$1,465.23 per unit week
Projected reserve increases	16.5% (2026); 32% annually (2027–2029)
Projected 2025–2029 capital needs	~$5.3M

Delinquencies and Collection Tools

Assessment delinquency pressure. The association reported 68 owners delinquent on assessments totaling roughly $189,344.85 as of November 30, 2025. Delinquencies reduce operating cash and require higher fees from owners who continue to pay, exacerbating the affordability problem. For a property with hundreds of intervals, even modest delinquency rates can create material cash flow strain, particularly when reserve obligations are rising.

Foreclosure tools. Public legal notices show the association using judicial foreclosure and in rem proceedings to enforce assessment liens, illustrating the enforcement tools available when owners default. One notice identifies Elk Run as the plaintiff in a judicial foreclosure of timeshare interests tied to its assessment lien. Another notice references a foreclosure action based on the association’s recorded covenants and assessment liens. A separate notice describes an in rem foreclosure proceeding related to unpaid assessments. These notices do not define the bankruptcy case, but they provide a public record of the collection mechanisms the association has used to address delinquency.

Inventory foreclosure agreement. Court filings describe an Inventory Foreclosure Agreement with Wyndham Vacation Resorts under which Wyndham finances foreclosure costs, takes title to delinquent intervals, and then pays forward assessments on those intervals. This program helps stabilize cash flow and reduces the association’s costs of collection, but it does not solve the underlying affordability challenge. It also reflects the broader ecosystem in which the association operates, with Wyndham acting as a key operational partner in the timeshare community.

Delinquency dynamics for owners. The enforcement tools described above are a reminder that timeshare associations face a delicate balance: aggressive collections can alienate owners and damage resale values, while lenient collections can erode cash flow and reserve funding. The bankruptcy process provides a structured forum to recalibrate that balance and to establish a plan that is binding on the owner base, which can be difficult to achieve through ordinary association governance votes alone.

Practical impact on the owner base. Delinquency-driven enforcement has practical consequences for both the association and individual owners. When liens and foreclosures are used to recover unpaid assessments, the association may regain inventory that must be maintained and marketed, while owners may see their intervals lost and their exposure to future assessments curtailed. The process can also affect the perception of the property’s resale market. For a resort that is marketed through multiple Wyndham-branded channels, maintaining a stable owner experience and avoiding a cycle of aggressive foreclosures can be important to preserving the resort’s reputation and its ability to attract new or replacement owners.

Operations and Management Structure

No direct employees. Elk Run has no employees and relies on a management agreement with Wyndham Vacation Management. This structure is common in timeshare associations and is critical for day-to-day operations, including reservations, maintenance scheduling, and owner billing. The absence of employees also means the case is not driven by labor costs or payroll issues; the focus is on maintaining the management framework while restructuring the reserve funding plan.

Management fee model. Court filings indicate the management agreement charges a fee equal to 10% of common expenses, with service costs passed through at cost. The filings reference 2024 service costs of about $106,218 and 2025 monthly payments of roughly $9,936.69 plus reimbursed expenses. These management charges are a predictable but material component of the operating budget, and they influence how much of each owner assessment can be allocated to reserves rather than operating overhead.

Cash management and reserve segregation. First-day filings emphasize the need to preserve the association’s existing cash management system, which includes separate operating and reserve accounts. That structure is essential for a timeshare association, because reserve funds are typically earmarked for long-term capital projects while operating accounts fund day-to-day maintenance. Disrupting the system could create confusion for owners and vendors alike, which is why the debtor’s first-day strategy prioritizes continuity rather than a shift to new banking or payment platforms.

Operational continuity and resort amenities. Resort marketing materials emphasize amenities that rely on consistent maintenance and capital spending. The Club Wyndham Pagosa listing highlights on-site amenities, while a tourism listing describes the resort’s suites and facilities. These references matter because they demonstrate the owner-facing expectations the association must preserve during the case. The restructuring effort is therefore closely tied to ensuring that the property remains attractive and functional, which in turn depends on adequate reserves for capital repairs.

Shared resort ecosystem. The Pagosa Springs resort campus is marketed across multiple Wyndham brand channels, including WorldMark Pagosa and other regional listings. These pages reinforce that Elk Run operates within a larger brand ecosystem rather than as a standalone property. The association’s bankruptcy must therefore preserve the operational relationship with Wyndham and maintain the property’s integration into the broader resort marketing and exchange networks.

Notice, Privacy, and Claims Administration

PII suppression and owner privacy. The debtors sought to suppress residential and email addresses for individual owners and creditors, arguing that routine filings would otherwise expose sensitive information for a large owner base. The motion notes roughly 2,234 interval owners across the three related associations, which makes routine notice both costly and intrusive. The motion proposes a master service list for routine notices while requiring broader notice to owners for key events such as the 341 meeting, bar date, and plan confirmation. This approach is designed to protect privacy while still providing meaningful notice, a balance that is particularly important in a case involving hundreds of individual interval owners.

Claims administration. The debtors asked to retain Omni Agent Solutions as the claims and noticing agent. In a timeshare case, this role is essential because the creditor matrix can include hundreds or thousands of owner entries, making centralized notice and claims tracking critical. The claims agent ensures that owners receive timely information about key deadlines, and it manages the official claims register for the court.

Why notice logistics matter in a timeshare case. The association’s owners are not passive trade creditors; they are members whose usage rights and future fees are tied to the outcome of the case. The debtor’s request to use a master service list for routine notices is intended to avoid inundating owners with procedural filings while still ensuring they receive notice for substantive events such as the bar date and plan confirmation. This approach balances administrative feasibility with due process, which is especially important in a community where the creditor base is fragmented across hundreds of interval owners.

Subchapter V timeline pressure. Subchapter V imposes a faster plan timeline, generally requiring a plan to be filed within 90 days absent extensions. This accelerated schedule can be helpful in a property-owner restructuring because it encourages early engagement on reserve funding and assessment levels. It also places pressure on the association to communicate clearly with owners and to develop a plan that can be confirmed within the compressed timeline.

Relationship to sister associations. Elk Run’s joint administration request with Masters Place and Village Pointe highlights the interdependence of the Pagosa Springs resort associations. While each entity remains separate, coordinated administration can improve efficiency and reduce duplicative filings. The debtor’s plan will likely need to address how shared amenities, management, and owner communications are handled across the resort campus so that owners understand their obligations and the scope of the restructuring.

Frequently Asked Questions

What is Subchapter V, and why did Elk Run elect it?

Subchapter V is a streamlined Chapter 11 process for small business debtors. Court filings indicate Elk Run has no secured debt, a limited creditor count, and a member-funded revenue model, which aligns with Subchapter V’s goal of faster, less expensive reorganizations.

How many interval owners are affected by this case?

The association has 936 weekly intervals across 18 units, and the related Pagosa Springs associations collectively account for roughly 2,234 interval owners. The noticing motion proposes a master service list for routine notices while providing full notice for major case events.

Will owners lose their timeshare usage rights?

The filing emphasizes operational continuity and preservation of the resort. The case is framed as a financial restructuring rather than a liquidation, so the stated objective is to maintain owner usage rights and keep the property operating.

What is driving the reserve shortfall?

Court filings describe a reserve study projecting about $5.3 million in repairs and capital improvements through 2029. Projected maintenance and reserve fee increases, combined with owner affordability constraints, created a funding gap the association could not resolve outside of court supervision.

How do delinquencies affect the association’s finances?

Delinquent assessments reduce operating cash and can force higher fees on owners who continue to pay. The association uses foreclosure tools and an inventory foreclosure agreement with Wyndham Vacation Resorts to recover delinquent intervals, which helps stabilize cash flow but does not eliminate the underlying affordability pressures.

What are the related Pagosa Springs cases?

Elk Run sought joint administration with Masters Place Condominiums Property Owners Association and Village Pointe Property Owners Association, two related associations in the same resort campus that share similar owner communities and operational systems.

Who is the claims agent for Elk Run Property Owners Association?

Court filings identify Omni Agent Solutions as the claims and noticing agent. The firm maintains the official claims register and distributes case notices to creditors and interval owners.

For more restructuring coverage and case updates, explore the ElevenFlo blog.