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if the debt is secured by a lien which could not be avoided under Bankruptcy Code ?522(f). ???? The Bankruptcy Court found that Bankruptcy Code ?522(f)(1)(B)(i) provides for avoidance of nonpossessory, non-purchase money security interests on household furnishings or households goods that are held primarily for the personal, family or household use of the debtor or a dependent of the debtor. ???? Citing its prior decision in the case of? In re: Goad? the Bankruptcy Court implicitly found that a mobile home is either a household furnishing or good under Bankruptcy Code ?522(f)(1)(B)(i). ???? The District Court, on appeal, decided that a mobile home was in no manner a household good or furnishing, as required under that subsection.? Neither of those terms is defined by the Bankruptcy Code.? The 4^th Circuit Court of Appeals has explained that household goods under this subsection are those items of personal property that are typically found in or around the home and are used by debtor or his dependents to support and facilitate day-to-day living within the house.? The District Court stated that it was clear that a mobile home is virtually incapable of itself being contained within a home.? In addition, a mobile home was not the type of thing used ?around the home? which facilitates ? living within the home.? ???? The District Court examined several cases from across the country dealing with this same issue and discovered only one other court which had agreed with the Bankruptcy Court that a mobile home is a household good.? Thus, the District Court concluded that the Bankruptcy Court improperly applied Bankruptcy Code ?522(f) and that a proper application of that subsection resulted in the lien in question being unavoidable.? The Goad case was overruled in that district and is no longer good law before that District Court.

???? In summary, the debtor was not entitled to avoid the lien on her mobile home held by the finance company.

Source: http://edwardswhitlocklawplc.blogspot.com/2012/08/bankruptcy-finance-company-lien-mobile.html

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