A Bankruptcy appraisal is an appraisal report that is for "Court Purposes" in setting the market value of a residential real property in a bankruptcy proceeding.  

 

There are two types of Bankruptcy filings, chapter 7 or 13. The trustee and/or the judge will be the final arbiter.  Bankruptcy professionals often hire, work with and rely on experienced real estate appraisers.  Some attorneys will ask their client to contact a local real estate appraiser to determine current market value.

 

In a bankruptcy petition, the credibility, experience and reputation of the appraiser is extremely important. The courts look to the appraiser for fair market value in the event of a sale.  If the value is too low, the debtor runs the risk of the trustee objecting to the valuation.  If the value is too high, the client could be prevented from filing a Chapter 7 or paying back a lot more in a Chapter 13.  

 

An experienced appraiser knows how vital it is to come in at the right valuation to insure the success of your case.