What is a Bankruptcy Appraisal?
When you file for bankruptcy, you must provide the court with a total financial snapshot. That snapshot includes your current income, debt, and other obligations.
Tallying up the assets and liabilities may be easy for some people. For a homeowner, determining the current value of your home can sometimes be a challenge.
Having your home appraised is an important step in the bankruptcy process. By having an appraisal done, you can provide the court with a formal document that details the current market value of your property.
The court uses the appraisal for two main purposes.
First, the court may use the appraisal to determine whether the property owned by the debtor is exempt from the claims of creditors. In some cases, the court will protect a debtor’s house and car from the claims of the creditors.
Second, the appraisal may be used to determine whether the debtor has sufficient assets or equity to pay his or her outstanding debts. If he or she does, the petition could be denied.
The Bankruptcy Appraisal Process
A bankruptcy appraisal provides an opinion of value for the property owned by the debtor. When determining the value of your home, the appraiser will look at:
- The size, quality, appeal and location of the home
- The overall condition, improvements and features of the property
- Contributing factors influencing the overall real estate market in the area
Based on these and other factors, the appraiser will do extensive research to determine the fair market value for your home. Any external or functional influences that would impact the value of your home will also be considered in the appraisal report.
Choosing a Bankruptcy Appraiser
It’s imperative to look for a local appraisal firm with experienced, and credible appraisers when choosing an appraisal company. This can make all the difference when it comes to the judge accepting or rejecting your home valuation.
This is because the bankruptcy judge will not only look at the valuations themselves. They look at the underlying factual analysis from which the valuations are derived.
Chicago Appraisals will provide an appraisal report that is easy to understand and creditable. Furthermore, veteran attorneys tend to be more comfortable receiving appraisals from a well-respected local appraisal company.
Contact Chicago Appraisals If You Have A Bankruptcy Situation
Typically, bankruptcy judges will only accept state-licensed and certified appraisers. It’s very important to find an that has a proven history of preparing accurate appraisals.
Chicago Appraisals has appraisers that are highly experienced with bankruptcy, foreclosure, short sale and liquidation appraisals.
Contact us for a consultation to determine if we can assist you with your bankruptcy appraisal.
The law surrounding bankruptcy law is complicated and the facts of each case are unique. This article provides a brief, general introduction to the topic. This is not legal advice. Please contact a bankruptcy attorney to provide legal advice. As with any legal matter, we highly recommend consulting with an attorney.