What Is Bankruptcy?

Bankruptcy is a process in which consumers and businesses can eliminate or repay their debts under the protection of the federal bankruptcy court. We recommend you consult with an attorney, Certified Public Accountant (CPA) or another financial professional specific to your circumstances.  Depending upon your situation they may advise you to get an appraisal.  Bankruptcies are generally divided into two types:

Liquidation – Chapter 7 bankruptcy falls under the liquidation category. This type of bankruptcy involves a trustee liquidating some of your property to pay back your debt. However, you may keep property that is exempt under individual state laws

Reorganization – Chapter 13 is the most common form of reorganization bankruptcy. Under Chapter 13 bankruptcy you keep all of your property, but must make monthly payments over three to five years to repay all or a settled amount of your debt

Both Chapter 7 and Chapter 13 bankruptcy have many rules and exceptions including which debts are covered, who can file, and what property you can and cannot keep. It is important to speak with a lawyer if you are considering bankruptcy.

Why Do I Need to Know the Value of My Home For Bankruptcy?

When you file for bankruptcy you must provide the court with a financial layout of your current income, debt and other financial obligations. This process involves establishing values for your property, which can be tricky. A bankruptcy appraisal is the best way to prove this information to the court accurately. It is extremely important to seek the services of an experienced appraiser who will provide you with a detailed and credible value of your property.

Why Do I Need An Accurate Home Value Assessment For a Bankruptcy?

It is important to note that significant discrepancies in the value of your home can create potential problems in your bankruptcy proceedings. If the value is too low the client runs the risk of a trustee objecting to their scheduled valuation and potentially asking the court for permission to seize the property. A low value will also call your integrity and credibility into question in future proceedings with the bankruptcy judge, trustee, and opposing counsel. In return, if a property value is listed too high a client may miss out on the availability of a Chapter 7 bankruptcy or end up paying more than is necessary in a Chapter 13 filing.

Since you need to be as accurate as possible when estimating your property’s value, you’ll need the help of a local San Diego property appraiser.

TCO APPRAISALS can perform an appraisal on the property to gather and determine information to accurately assess its current fair market value.

What Other Appraisal Services Do You Offer?

Our team of certified residential appraisers have years of experience appraising property in the San Diego area. At TCO APPRAISALS we will help you determine your property’s value by offering specialized services like: