Would I Lose My Trailer In A Bankruptcy

2008-05-05

 Joseph, whether or not you lose your mobile home in a bankruptcy would depend on various factors, particularly its value and the amount owing to a secured creditor. If the mobile home has been pledged as collateral on a loan (i.e. a “secured debt”), you likely would not lose the mobile home provided you are not behind in your payments and you continue making your regular monthly payments. If there is equity in your mobile home, you may have to buy back this equity from the bankruptcy estate. If your mobile home is not secured by a creditor and you own it free and clear, it is possible that it would be sold in a bankruptcy. In this situation you may consider doing a proposal to your creditors rather than a bankruptcy.