Hilburn v. Southern Trailer Distributors, Inc.

William T. Smith and his wife Betty have filed a petition in voluntary bankruptcy. A major part of their personal property is a mobile home, the bone of contention here. Trailer Credit Corporation (Trailer), as assignee of Southern Trailer Distributors, Inc., claims priority as holder of a perfected security interest in the mobile home. The trustee in bankruptcy challenges Trailer’s preferred status, asserting that its security interest was never perfected under Mississippi law. The bankruptcy judge ruled in favor of the trustee, holding that Trailer’s security interest was unperfected, but…