Manufactured and Mobile Homes in Bankruptcy

How does bankruptcy actually treat a manufactured or mobile home?

When you file, your property becomes property of the bankruptcy estate, and the manufactured home goes on your schedules like any other asset. The official property schedule (Official Form 106A/B) lists "Manufactured or mobile home" as a checkbox alongside single-family home, condominium, and land, so the forms themselves anticipate this situation (U.S. Bankr. Ct. D. Alaska, The Forms Individuals and Married Couples Need to File Bankruptcy).

Two things then matter. First, the automatic stay: filing generally operates as a stay of acts to obtain possession of estate property and to enforce liens against it (11 U.S.C. § 362). Second, exemptions: property is not automatically protected, and you must list it on Schedule C to claim an exemption at all (Bankr. S.D. Iowa official guidance — Instructions - Bankruptcy Forms for Individuals).

If a lender holds a lien on the home, the discharge relieves you of personal liability but does not by itself eliminate that security interest.

• The home is listed on the property schedule, with its full value and the value of your share.
• Any loan secured by the home is listed separately on Schedule D as a secured claim.
• Exemptions are claimed on Schedule C and are never automatic.

What changes the answer for a mobile home?

Several facts move the outcome more than the chapter you file under. The largest is how the home is titled. Some homes carry a certificate of title, much like a vehicle; others have been affixed to owned land and are treated as real property. That distinction can decide which exemption applies and how a lender enforces its lien.

Equity is the next factor. Exemptions protect equity up to a published amount, so a home with a large loan balance and little equity presents a different problem from one owned free and clear.

Lot ownership matters too. If you own the home but rent the lot, you have both a secured debt and a lease or rental obligation, and those are handled differently in your paperwork. Finally, your state of domicile determines which exemption scheme is available to you under 11 U.S.C. § 522.

What does federal law say about keeping the home?

The Bankruptcy Code does not have a separate chapter for manufactured homes. It works through general provisions. Section 362 provides that filing operates as a stay of the commencement or continuation of collection actions, of acts to obtain possession of property of the estate, and of acts to create, perfect, or enforce a lien against estate property (11 U.S.C. § 362).

That stay is not permanent and not absolute. A secured creditor may ask the court for relief from the stay, and the issues at that hearing are narrow: adequate protection, your equity in the property, and whether the property is necessary to an effective reorganization (11 U.S.C. § 362).

Section 522 governs exemptions and lets an individual debtor exempt either the federal list in subsection (d) or the applicable state and other federal exemptions, depending on where the debtor has been domiciled (11 U.S.C. § 522).

• The stay generally stops repossession and lien enforcement while the case is pending.
• A creditor can move for relief from the stay, and the court decides on a limited set of issues.
• Discharge relieves personal liability but does not remove a valid lien on the home.

Where do state and local rules differ?

This is where manufactured homes diverge most sharply from state to state, and it is the part you should check against your own state hub rather than assume. Some states address mobile and manufactured homes by name in their homestead statute. Colorado, for example, provides that a manufactured home for which a certificate of title or registration has been issued is a homestead entitled to the same exemption as a house, and extends the same treatment to trailers and trailer coaches (Colo. Rev. Stat. § 38-41-201.6).

Other states reach a similar place through the definition of a dwelling. California defines "dwelling" to include a mobilehome together with the outbuildings and the land upon which they are situated (Cal. Civ. Proc. Code § 704.710).

States also decide whether you may use the federal list at all. Arizona and California have both opted out of the federal exemptions (A.R.S. § 33-1133; Cal. Civ. Proc. Code § 703.130), and Maine restricts the choice by statute (14 M.R.S. § 4426).

• Check whether your state names manufactured homes in its homestead statute.
• Check whether your state has opted out of the federal exemptions under § 522(d).
• Exemption amounts live on the state pages, not here, because they change by state and over time.

What does this look like in practice?

Consider three common shapes. In the first, the home is owned outright and sits on rented land in a park. The whole question is whether an exemption covers its value; the lot rent is an ongoing living expense, and unpaid back rent is generally a debt you schedule like any other.

In the second, the home carries a loan and you are behind. Court guidance is blunt about the general rule: under both Chapter 7 and Chapter 13, you must pay debts secured by property if you want to keep the property, and Chapter 13 can be used to cure defaults on secured debts (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter).

In the third, the home is affixed to land you own. That looks more like a traditional real-property case, and lien and valuation questions run through the local rules on valuing collateral (Bankr. D. Md. official guidance — Local Bankruptcy Rule).

• Owned outright on rented land: the exemption question dominates.
• Financed and behind: curing the default is the usual Chapter 13 route.
• Affixed to owned land: valuation and lien treatment follow real-property practice.

What documents and information will you need?

Gather the paperwork before you talk to anyone, because most of the disagreement in these cases is about facts, not law. Start with anything showing how the home is titled: a certificate of title or registration, or a deed if the home has been affixed to land you own.

Then the money. The loan agreement and current payoff statement, your payment history, and any notice of default or repossession you have received. If you rent the lot, bring the lot lease or park agreement and a record of what you owe.

You will also need a supportable value for the home. Local rules on valuing collateral commonly require evidence of value, not an estimate (Bankr. D. Md. official guidance — Local Bankruptcy Rule). Filing costs are separate: the Chapter 7 filing fee is $245 (28 U.S.C. § 1930(a)(1)(A), (f)(1)) and the Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)).

• Certificate of title, registration, or deed for the home
• Loan agreement, payoff statement, and payment history
• Lot lease or park agreement, plus any arrears
• Evidence of the home's current value
• Any repossession, eviction, or default notices

What should you ask a lawyer?

Bring questions that turn on your own documents. Ask whether your home is treated as real property or personal property in your state, and what evidence establishes that. Ask which exemption scheme applies given where you have been domiciled, since 11 U.S.C. § 522 ties that to a lookback on your domicile.

Ask what happens to the lot lease if you file, and whether the arrears change that. Ask what a creditor would have to show to get relief from the stay in your situation.

Court guidance is consistent that the clerk's office cannot give legal advice and that these publications are not a substitute for advice from a qualified attorney (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). If cost is the barrier, several districts publish resources for people who cannot afford a lawyer (Bankr. D. Md. official guidance).

• Is my home real property or personal property under my state's law, and what proves it?
• Which exemption scheme applies to me, and what does it cover?
• How is the lot lease treated, and what happens to unpaid lot rent?
• What would the lender have to show to get relief from the stay?
• Which chapter fits my situation, and what would each cost?

Frequently asked questions

Does filing stop a mobile home repossession?

Filing generally operates as a stay of acts to obtain possession of property of the estate and to enforce liens against it (11 U.S.C. § 362), which commonly halts repossession while the case proceeds. The stay is not permanent. A secured creditor can move for relief, and the court considers adequate protection, your equity, and whether the property is necessary to an effective reorganization.

Can I keep my manufactured home in Chapter 7?

It depends on equity and exemptions. Court guidance states plainly that under both Chapter 7 and Chapter 13, you must pay debts secured by property if you want to keep the property (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Exemptions are also not automatic. You must list the property on Schedule C to claim one at all.

Is a mobile home covered by the homestead exemption?

In some states, expressly. Colorado provides that a titled manufactured home is a homestead entitled to the same exemption as a house, and extends that to trailers and trailer coaches (Colo. Rev. Stat. § 38-41-201.6). California defines a dwelling to include a mobilehome and the land it sits on (Cal. Civ. Proc. Code § 704.710). Check your own state hub.

What happens to my lot rent if I file?

Unpaid lot rent is a debt you schedule, and the automatic stay generally applies to collection of prepetition claims (11 U.S.C. § 362). Ongoing rent is a living expense you continue to owe. Court guidance notes that a landlord who already obtained a judgment before you filed may be able to continue an eviction, so timing matters. Ask a lawyer about your specific notices.

Can I use the federal exemptions for my manufactured home?

Only if your state permits it. Section 522 lets a debtor choose the federal list in subsection (d) or the applicable state exemptions, but a state may bar the federal option. Arizona and California have both opted out (A.R.S. § 33-1133; Cal. Civ. Proc. Code § 703.130), and Maine limits the choice by statute (14 M.R.S. § 4426).

Does it matter whether my home is titled as personal property?

Yes, and it is often the first thing a lawyer will check. The official property schedule lists "Manufactured or mobile home" among real-estate types, but many such homes carry a certificate of title instead. Some state statutes key their homestead protection to that certificate (Colo. Rev. Stat. § 38-41-201.6). The distinction commonly affects which exemption applies and how a lender enforces its lien.

What does it cost to file?

The Chapter 7 filing fee is $245 (28 U.S.C. § 1930(a)(1)(A), (f)(1)), plus a $78 administrative fee and a $15 trustee surcharge (Bankruptcy Court Miscellaneous Fee Schedule, Items 8 and 9). The Chapter 13 filing fee is $235 (28 U.S.C. § 1930(a)(1)(B)), plus a $78 administrative fee. Attorney fees are separate and vary.

Will bankruptcy remove the lien on my mobile home?

Not by itself. A discharge relieves you of personal liability for a dischargeable debt, but court guidance is explicit that it does not eliminate a mortgage or security interest the debtor granted to a lender (U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter). Lien treatment is a separate question with its own procedures, and local rules govern valuing collateral.

Sources

• 11 U.S.C. § 362 — Automatic stay · official source
• 11 U.S.C. § 522 — Exemptions · official source
• Colo. Rev. Stat. § 38-41-201.6 — Mobile home, manufactured home, trailer, and trailer coach homestead exemption
• Cal. Civ. Proc. Code § 704.710
• Cal. Civ. Proc. Code § 703.130
• A.R.S. § 33-1133 — Other exemption laws
• 14 M.R.S. § 4426 — Exemptions in bankruptcy proceedings
• U.S. Bankr. Ct. D. Ariz., Choosing Your Chapter: What can Bankruptcy do for you? What will it do to you?
• U.S. Bankr. Ct. D. Alaska, The Forms Individuals and Married Couples Need to File Bankruptcy
• Bankr. S.D. Iowa official guidance — Instructions - Bankruptcy Forms for Individuals
• Bankr. D. Md. official guidance — Local Bankruptcy Rule
• 28 U.S.C. § 1930(a)(1)(A), (f)(1)
• 28 U.S.C. § 1930(a)(1)(B)
• Bankruptcy Court Miscellaneous Fee Schedule, Item 8
• Bankruptcy Court Miscellaneous Fee Schedule, Item 9

Related

• Chapter 7
• Chapter 13
• Exemptions: what they protect
• The automatic stay
• Build your personalised roadmap
• Find your local bankruptcy court