Boise Bankruptcy Appraisal Services
The basic goal of bankruptcy law is to release debtors from personal liability originating from specific debts. It also prohibits creditors from ever taking action against the debtor to collect those debts. When a person files for bankruptcy, they are required by law to supply the court with a summary of current income and debts, along with an accounting of all assets and other financial obligations. For many people, the home we live in is our most valuable economic asset. That’s one of the reasons why you’ll need to be as accurate as possible when your attorney asks you to estimate the value of your home.
Determining the current value for bankruptcy purposes is something real estate appraisers are trained to do. In fact, in many bankruptcy cases an attorney will recommend that their clients engage a local real estate appraiser to perform an appraisal on the home to accurately assess its current fair market value. It’s by far the most effective way to substantiate to the court that your value, as documented in your bankruptcy files, is accurate. The individual appraiser’s competency and reputation within the industry and among their peers can be a decisive factor to the bankruptcy judge when weighing the overall reliability and credibility of your home valuation.
Much like an appraisal that’s required for securing a mortgage loan, a bankruptcy appraisal report establishes an opinion of your home’s fair market value using a comparative market analysis along with other valuation methodologies. Significant inconsistencies within your appraisal report, if not property developed, can create potential problems in bankruptcy. If it’s undervalued, the client runs the risk of a trustee objecting to their valuation and potentially asking the court for permission to seize your home. In addition, an obvious undervaluation will call your honesty and credibility into question in future proceedings with the Bankruptcy judge, trustee, and opposing counsel. If the estimate is grossly overvalued, a client may miss out on the potential benefits of a Chapter 7 and/or end up paying back more than necessary in a Chapter 13.
It’s clear that real estate appraisers perform an essential function in the bankruptcy process. Bankruptcy professionals frequently hire, work with and rely on experienced real estate appraisers. Our state certified real estate appraiser at ‘Appraisal One’ understands the intricacies involved in developing a well-supported and fully documented opinion of the value and its implication under these difficult circumstances. As always, we work to meet and exceed your highest expectations.