Have you ever wondered how a home’s value is calculated for bankruptcy?  Normally, the attorney recommends an appraisal for their client’s home.

During bankruptcy proceedings, the debtor’s home value comes in to question to establish an assessment of the debtor’s assets and debts. An accurate assessment is necessary for all parties involved. Simply using the value of other homes in the neighborhood or the taxed value of the property may not be accurate. In fact, many attorneys will advise their client to hire a professional to accomplish the task to ensure accuracy. An accurate assessment of the current market value is necessary.

Why do you need the Fair Market Value?

A home’s value assessment or appraisal gives you the accurate assessment of value. A substantial discrepancy in your home’s value could create possible problems during bankruptcy. When its value is listed too low the debtor is at risk of the trustee in the bankruptcy objecting to the valuation, at which time the trustee could potentially ask the court to foreclose or seize the property, your family home.

Additionally, when the value is obviously well below reasonable, or a “low-ball,” your integrity, honesty, and truthfulness will be questioned throughout the proceedings. The judge, opposing counsel, and the trustee would consider your word suspect. Whereas, when too high a value is listed, the debtor is could miss the opportunity to file under Chapter 7, or pay back more than would normally be required under Chapter 13.

What are the Functions of an Appraiser?

An appraiser of real property, in this case your home, accomplishes many integral functions during a bankruptcy. An appraiser normally estimates the asset collateral value of the debtor-in-possession or DIP, as well as the secured creditor’s financings; assists in identifying and valuating sale/leasebacks, licensing, spin-offs, or other re-organization chances or opportunities; and frequently is involved in the valuation of restructured debts and equities, as well as the assessment or formation of opinion regarding the fairness pertaining to the re-organization plan. 

Given those reasons, why would you trust the appraisal of your family home to anyone but the True Value Appraisal team? Our team is made up of proven professional, with years of experience who understand the complex process involved in assessing property values and put in the time and effort to ensure an accurate appraisal for you and your family.

Call TVA today for answers to your questions regarding fair market values and home appraisals at 314-862-1644. Or, start with an online form and one of our True Value Appraisal, Inc. associates will give you a call.