diff --git a/server/src/com/cloud/network/element/VirtualRouterElement.java b/server/src/com/cloud/network/element/VirtualRouterElement.java
index 3fe46b969f2..dad075ece1c 100644
--- a/server/src/com/cloud/network/element/VirtualRouterElement.java
+++ b/server/src/com/cloud/network/element/VirtualRouterElement.java
@@ -55,7 +55,6 @@ import com.cloud.vm.NicProfile;
 import com.cloud.vm.ReservationContext;
 import com.cloud.vm.UserVmManager;
 import com.cloud.vm.VirtualMachine;
-import com.cloud.vm.VirtualMachine.State;
 import com.cloud.vm.VirtualMachineProfile;
 import com.cloud.vm.dao.DomainRouterDao;
 import com.cloud.vm.dao.UserVmDao;
diff --git a/server/src/com/cloud/server/ManagementServerImpl.java b/server/src/com/cloud/server/ManagementServerImpl.java
index c8af79ff956..cf681c02881 100755
--- a/server/src/com/cloud/server/ManagementServerImpl.java
+++ b/server/src/com/cloud/server/ManagementServerImpl.java
@@ -3640,50 +3640,6 @@ public class ManagementServerImpl implements ManagementServer {
         return new String[] { "commands.properties" };
     }
 
-    protected class AccountCleanupTask implements Runnable {
-        @Override
-        public void run() {
-            try {
-                GlobalLock lock = GlobalLock.getInternLock("AccountCleanup");
-                if (lock == null) {
-                    s_logger.debug("Couldn't get the global lock");
-                    return;
-                }
-
-                if (!lock.lock(30)) {
-                    s_logger.debug("Couldn't lock the db");
-                    return;
-                }
-
-                Transaction txn = null;
-                try {
-                    txn = Transaction.open(Transaction.CLOUD_DB);
-
-                    List<AccountVO> accounts = _accountDao.findCleanups();
-                    s_logger.info("Found " + accounts.size() + " accounts to cleanup");
-                    for (AccountVO account : accounts) {
-                        s_logger.debug("Cleaning up " + account.getId());
-                        try {
-                            _accountMgr.cleanupAccount(account, _accountMgr.getSystemUser().getId(), _accountMgr.getSystemAccount());
-                        } catch (Exception e) {
-                            s_logger.error("Skipping due to error on account " + account.getId(), e);
-                        }
-                    }
-                } catch (Exception e) {
-                    s_logger.error("Exception ", e);
-                } finally {
-                    if (txn != null) {
-                        txn.close();
-                    }
-
-                    lock.unlock();
-                }
-            } catch (Exception e) {
-                s_logger.error("Exception ", e);
-            }
-        }
-    }
-
     protected class EventPurgeTask implements Runnable {
         @Override
         public void run() {
diff --git a/server/src/com/cloud/user/AccountManagerImpl.java b/server/src/com/cloud/user/AccountManagerImpl.java
index 8975b6eff73..7dc33f047af 100755
--- a/server/src/com/cloud/user/AccountManagerImpl.java
+++ b/server/src/com/cloud/user/AccountManagerImpl.java
@@ -976,6 +976,7 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
         boolean success = false;
         AccountVO acctForUpdate = _accountDao.createForUpdate();
         acctForUpdate.setState(State.enabled);
+        acctForUpdate.setNeedsCleanup(false);
         success = _accountDao.update(Long.valueOf(accountId), acctForUpdate);
         return success;
     }
@@ -1148,14 +1149,19 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
         }
 
         AccountVO account = _accountDao.findById(accountId);
-        if ((account == null) || account.getState().equals(State.disabled)) {
+        if ((account == null) || (account.getState().equals(State.disabled) && !account.getNeedsCleanup())) {
             success = true;
         } else {
             AccountVO acctForUpdate = _accountDao.createForUpdate();
             acctForUpdate.setState(State.disabled);
             success = _accountDao.update(Long.valueOf(accountId), acctForUpdate);
-
-            success = (success && doDisableAccount(accountId));
+            
+            if (success) {
+                if (!doDisableAccount(accountId)) {
+                    s_logger.warn("Failed to disable account " + account + " resources as a part of disableAccount call, marking the account for cleanup");
+                    _accountDao.markForCleanup(accountId);
+                }
+            }
         }
         return success;
     }
@@ -1776,9 +1782,10 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
                 try {
                     txn = Transaction.open(Transaction.CLOUD_DB);
 
-                    List<AccountVO> accounts = _accountDao.findCleanups();
-                    s_logger.info("Found " + accounts.size() + " accounts to cleanup");
-                    for (AccountVO account : accounts) {
+                    //Cleanup removed accounts
+                    List<AccountVO> removedAccounts = _accountDao.findCleanupsForRemovedAccounts();
+                    s_logger.info("Found " + removedAccounts.size() + " removed accounts to cleanup");
+                    for (AccountVO account : removedAccounts) {
                         s_logger.debug("Cleaning up " + account.getId());
                         try {
                             cleanupAccount(account, getSystemUser().getId(), getSystemAccount());
@@ -1786,6 +1793,23 @@ public class AccountManagerImpl implements AccountManager, AccountService, Manag
                             s_logger.error("Skipping due to error on account " + account.getId(), e);
                         }
                     }
+                    
+                    //cleanup disabled accounts
+                    List<AccountVO> disabledAccounts = _accountDao.findCleanupsForDisabledAccounts();
+                    s_logger.info("Found " + disabledAccounts.size() + " disabled accounts to cleanup");
+                    for (AccountVO account : disabledAccounts) {
+                        s_logger.debug("Cleaning up " + account.getId());
+                        try {
+                            if (disableAccount(account.getId())) {
+                                account.setNeedsCleanup(false);
+                                _accountDao.update(account.getId(), account);
+                            }
+                        } catch (Exception e) {
+                            s_logger.error("Skipping due to error on account " + account.getId(), e);
+                        }
+                    }
+                    
+                    
                 } catch (Exception e) {
                     s_logger.error("Exception ", e);
                 } finally {
diff --git a/server/src/com/cloud/user/dao/AccountDao.java b/server/src/com/cloud/user/dao/AccountDao.java
index 9969bba19c0..2ff13f983ff 100644
--- a/server/src/com/cloud/user/dao/AccountDao.java
+++ b/server/src/com/cloud/user/dao/AccountDao.java
@@ -37,9 +37,10 @@ public interface AccountDao extends GenericDao<AccountVO, Long> {
     List<AccountVO> findActiveAccounts(Long maxAccountId, Filter filter);
     List<AccountVO> findRecentlyDeletedAccounts(Long maxAccountId, Date earliestRemovedDate, Filter filter);
     List<AccountVO> findNewAccounts(Long minAccountId, Filter filter);
-    List<AccountVO> findCleanups();
+    List<AccountVO> findCleanupsForRemovedAccounts();
     List<AccountVO> findAdminAccountsForDomain(Long domainId);
     List<AccountVO> findActiveAccountsForDomain(Long domain);     
     void markForCleanup(long accountId);
-    List<AccountVO> listAccounts(String accountName, Long domainId, Filter filter);
+    List<AccountVO> listAccounts(String accountName, Long domainId, Filter filter);
+    List<AccountVO> findCleanupsForDisabledAccounts();
 }
diff --git a/server/src/com/cloud/user/dao/AccountDaoImpl.java b/server/src/com/cloud/user/dao/AccountDaoImpl.java
index ad34a188dd0..1d000b9b92a 100755
--- a/server/src/com/cloud/user/dao/AccountDaoImpl.java
+++ b/server/src/com/cloud/user/dao/AccountDaoImpl.java
@@ -50,9 +50,9 @@ public class AccountDaoImpl extends GenericDaoBase<AccountVO, Long> implements A
     
     protected final SearchBuilder<AccountVO> AccountNameSearch;
     protected final SearchBuilder<AccountVO> AccountTypeSearch;
-    protected final SearchBuilder<AccountVO> DomainAccountsSearch;
-
-    protected final SearchBuilder<AccountVO> CleanupSearch;
+    protected final SearchBuilder<AccountVO> DomainAccountsSearch;
+    protected final SearchBuilder<AccountVO> CleanupForRemovedAccountsSearch;
+    protected final SearchBuilder<AccountVO> CleanupForDisabledAccountsSearch;
     
     protected AccountDaoImpl() {
         AccountNameSearch = createSearchBuilder();
@@ -69,19 +69,33 @@ public class AccountDaoImpl extends GenericDaoBase<AccountVO, Long> implements A
         DomainAccountsSearch.and("removed", DomainAccountsSearch.entity().getRemoved(), SearchCriteria.Op.NULL);
         DomainAccountsSearch.done();
         
-        CleanupSearch = createSearchBuilder();
-        CleanupSearch.and("cleanup", CleanupSearch.entity().getNeedsCleanup(), SearchCriteria.Op.EQ);
-        CleanupSearch.and("removed", CleanupSearch.entity().getRemoved(), SearchCriteria.Op.NNULL);
-        CleanupSearch.done();
-        
+        CleanupForRemovedAccountsSearch = createSearchBuilder();
+        CleanupForRemovedAccountsSearch.and("cleanup", CleanupForRemovedAccountsSearch.entity().getNeedsCleanup(), SearchCriteria.Op.EQ);
+        CleanupForRemovedAccountsSearch.and("removed", CleanupForRemovedAccountsSearch.entity().getRemoved(), SearchCriteria.Op.NNULL);
+        CleanupForRemovedAccountsSearch.done();
+        
+        CleanupForDisabledAccountsSearch = createSearchBuilder();
+        CleanupForDisabledAccountsSearch.and("cleanup", CleanupForDisabledAccountsSearch.entity().getNeedsCleanup(), SearchCriteria.Op.EQ);
+        CleanupForDisabledAccountsSearch.and("removed", CleanupForDisabledAccountsSearch.entity().getRemoved(), SearchCriteria.Op.NULL);
+        CleanupForDisabledAccountsSearch.and("state", CleanupForDisabledAccountsSearch.entity().getState(), SearchCriteria.Op.EQ);
+        CleanupForDisabledAccountsSearch.done();
     }
     
     @Override
-    public List<AccountVO> findCleanups() {
-    	SearchCriteria<AccountVO> sc = CleanupSearch.create();
+    public List<AccountVO> findCleanupsForRemovedAccounts() {
+    	SearchCriteria<AccountVO> sc = CleanupForRemovedAccountsSearch.create();
     	sc.setParameters("cleanup", true);
     	
     	return searchIncludingRemoved(sc, null, null, false);
+    }
+    
+    @Override
+    public List<AccountVO> findCleanupsForDisabledAccounts() {
+        SearchCriteria<AccountVO> sc = CleanupForDisabledAccountsSearch.create();
+        sc.setParameters("cleanup", true);
+        sc.setParameters("state", State.disabled);
+        
+        return listBy(sc);
     }
     
     @Override