The What, How And Why Of A Bankruptcy Appraisal

Jun 13, 2024 | Published by Leave your thoughts

If you are filing for bankruptcy, getting a bankruptcy appraisal may be one of the most important things you do.

Filing for bankruptcy as a means to control of your finances is a difficult, yet sometimes necessary procedure. When you file, you must provide the court with transparent records of your income, debt and any other financial affiliations.

While gathering current bills, collections statements and bank statements may not be so complicated, providing the value of your home is trickier.

There are several types of bankruptcy filings. Briefly, a Chapter 13 bankruptcy stipulates that the debtor prepare a repayment plan with creditors, and a Chapter 7 states that you are seeking total liquidation of all assets, including your home.

The court examines all of your supporting documents. For the court to approve a Chapter 7 liquidation bankruptcy or a Chapter 13 debt repayment bankruptcy, the appraisal must be present to establish the value of your home.

The bankruptcy appraisal is similar to mortgage lending appraisal. An appraiser still uses comps of homes nearby to establish a fair market value for your house.

When selecting an appraiser to perform your appraisal, go with one that is a veteran of this process. Your bankruptcy appraisal may help determine whether or not you keep your home.

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This post was written by Joseph Castaneda

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