When you file for bankruptcy, you must provide the court with a total financial snapshot of your current income, debt, and other obligations.
While establishing values for most of these things is relatively easy, determining the current value of your home can be challenging.
A bankruptcy appraisal is the best way to prove to the court that your value, as written in your bankruptcy documents, is accurate. The experience, credibility, and industry reputation of the appraiser are critical to the bankruptcy judge in accepting or rejecting your home valuation as accurate.
Much like the appraisal required for getting a mortgage loan, a bankruptcy appraisal report establishes an opinion of your home’s fair market value. By comparing your home to between three and six recent house sales in your neighborhood, the appraiser uses factual data to support the value certified in the report.
The bankruptcy judge has the final authority for all proceedings, including accepting or rejecting your home appraisal report and value. This authority to make or break your bankruptcy petition makes it crucial that the person or firm performing your bankruptcy appraisal prepare a thorough, detailed and strongly supported the report.