Can I File Bankruptcy & Still Keep My Mobile Home?

Mobile Homes

• Mobile homes are manufactured dwellings that are often found in trailer parks. They are cheaper per square foot to construct than ordinary houses and are an economical housing choice.
  
  

Types of Bankruptcy

• Most people who file for bankruptcy file under one of two chapters. In Chapter 13 they make a plan to pay a percentage of what they owe back to creditors while keeping some assets. Under Chapter 7 most of their assets are liquidated and the proceeds distributed as a percentage to creditors.
  
  

Homestead Exemptions

• Most states have homestead exemptions, which allow homeowners to keep their primary residence even during Chapter 7 bankruptcy. Mobile homes are generally treated just like stationary homes for purposes of the homestead exemption so long as they are the person filing for bankruptcy's primary residence.
  
  

The Land Beneath the Mobile Home

• If a person owns the land on which their mobile home sits it will be included in the homestead exemption. However, if the land is rented then the land is treated similarly to an apartment and not included in the exemption. In this instance the home itself is still subject to the exemption.
  
  

Fun Fact

• The word bankruptcy comes from the Latin words "bancus" for table and "ruptus" for broken. In ancient times a merchant's table was physically broken to signify that he could no longer do business.