Keeping your mobile home in bankruptcy may depend on a few legal factors. Many debtors who seek protection for property such as a mobile home qualify for protection under certain exemptions available when you file. In most cases, it will depend on the state you live in and what exemptions are available for protection. Other factors to consider include whether you are the land owner of the property the mobile home sits on, and whether the vehicle is considered real estate or personal property.
In some states, you may qualify for the homestead exemption and receive protection up to a certain amount depending on the value of the mobile home. You may qualify to use these exemptions at the state level or federal level. Depending on advantages offered for each level, you may feel one offers more protection than the other based on amounts or actual protection value.
Mobile homes present a unique situation for debtors in bankruptcy since it can be considered personal property versus real property depending on the title holder. If you are making payments on it to where it is considered personal property, you may have the option of reducing or cramming down payments based on the outstanding loan amount. Meaning, if you owe more than what it is worth, the value is what you would pay and the remaining balance could be discharged or eliminated.
If the mobile home is considered real property you could qualify for additional exemptions to help protect equity. Mobile home protection in bankruptcy may include advanced planning with a qualified bankruptcy expert. Review questions and concerns with your bankruptcy attorney.
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