my utah bankruptcy blog


Do I have to keep making payments on my mobile home after I file bankruptcy?

Posted in Utah Bankruptcy by Administrator on the December 13th, 2013

Yes, if you want to keep it.

I had clients who recently filed a chapter 7 bankruptcy and listed the lienholder on their mobile home.  It was worth about $18,000, and they only owed her about $2,000.  After filing bankruptcy, they stopped making payments.  The creditor called me and asked if I could speak with them.

The payments are only $150 a month, and they’re within a year and a half of owning the home outright.

When I spoke with the clients, they advised that they thought that bankruptcy discharged their debt on the home.  Kind of.  It discharged their personal liability, but the home was still collateral for the loan.  This means that if they want to keep the home, they have to pay off the lien against it.

In this situation, it was a no brainer to keep making payments, since they owed so little.

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