Real estate appraisers perform an essential function in the bankruptcy proceedings. Appraisers can estimate debtor-in-possession (DIP) financing and asset collateral values of secured creditors as well as help to identify and value sale/leasebacks, spin-offs, licensing and other re-organization opportunities. Appraisers can also play a part in advising on the feasibility of a proposed reorganization plan and debt restructuring.
From the debtor’s prospective, an important step in the bankruptcy process, is the accurate valuation of the petitioner’s assets. Significant discrepancies in an individual’s value estimates versus true fair market value could create future problems in the bankruptcy proceedings. If the value forecast is too low the petitioner runs the risk of the trustee objecting to their scheduled valuation and possibly seeking permission from the court to seize your assets. In addition, an obvious low value will call your honesty, truthfulness and credibility into question in the eyes of the bankruptcy judge, trustee, and opposing counsel. On the other hand, if a value is listed too high, you may be ineligible for a Chapter 7 filing or end up paying back more than necessary in a Chapter 13 filing.
With so much on the line in bankruptcy proceedings, the best thing a petitioner can do is to hire a certified real estate appraiser in order to accurately assess the true market value of the real estate holdings.
For these reasons, individuals and bankruptcy professionals quite often need to work with competent and experienced real estate appraisers. At Crossroads Appraisal Group, our team of certified appraisers understands the intricacies involved in appraising a property for bankruptcy proceedings and will work hard to meet and exceed your valuation needs.
Give us a call today with any questions you may have and scroll through our ‘Praise’ page to see what others are saying about Crossroads Appraisal Group.