Keeping Your Mobile Home in Bankruptcy

Keeping your mobile home in
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.

The Homestead Exemption

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.

Personal Property vs. Real Property

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.

Have Questions About Your Mobile Home and Bankruptcy?

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. If you would like
set up a free consultation with one of our bankruptcy attorneys, feel
free to give us a call or fill out our
contact form.