A Horse Trailer is Not a Home

Unusual situations often show up in bankruptcy court eventually.  And sometimes they contain both humor and depression in equal measure.

Recently the 8th Circuit Bankruptcy Appellate Panel was called upon to rule on whether a horse trailer could be a mobile home under Missouri law.  The issue arose because the debtor who filed bankruptcy owned a small $3,000 trailer designed for hauling horses which he also happened to sleep in occasionally.  But for the generosity of friends and his girlfriend, this would be his only home.

Under Missouri law, a debtor can exempt - protect - up to $5,000 for a mobile home used as a residence (under some circumstances).  But there is virtually no protection for an unmotorized trailer.  So the court was called on to determine whether he could protect his sometime-abode from the clutches of his Chapter 7 trustee, collecting assets for his creditors.

Sadly for the debtor, the BAP concluded he could not.  The BAP relied on a relatively narrow definition in Missouri law for "Manufactured Homes (Mobile Homes)" to reason that the (equally narrow) horse trailer failed to meet the definition.  Granted, it took seven pages to reach this conclusion (although it would probably take me 12 pages to say the same thing) but the conclusion seems well-founded if terribly unfortunate.

In this holiday season, it's nice to read a few cases that bring a chuckle to the lips.  And to hope we never are so down on our luck as to rely on a horse trailer as the only roof over our heads - or to have a Chapter 7 trustee trying to take it from us.  And let us spare a moment to consider those who may be in even worse shape.

by Wendell Sherk, Missouri Bankrupcty Attorney · Posted in *Bankruptcy Basics,*Chapter 7