Jump to content

How Do You Determine House Equity and Car Values in BK?


maekenzie
 Share

Recommended Posts

Call a realtor and get a 'walk away' price on your house. Then subtract all selling fees from that number. Then you subtract what you OWE and that will leave you with a good ballpark equity number.

For your car, get a BLACKBOOK quote on it - subtract for any needed repairs then what you owe on it.

Link to comment
Share on other sites

Thanks so much for your reply LadyNRed. If you could answer a couple more quick questions I would really appreciate it. Is Blackbook, trade in value under the kbb? Also, when does the IIB notation show up on your credit report, immediatly after filing or only after the BK7 has been discharged. Thank you.

Maekenzie

Link to comment
Share on other sites

Bankruptcy trustees now tend to look at what comparable properties are selling for in the neighborhood and then allow a certain percentage as a sales commission. Assets are valued at what they could sell for if liquidated. Many districts now go with this criteria with C7 filers. Also now more complete financial screening with both 7 & 13 filiers. It's expected to be tighter in several months.

Link to comment
Share on other sites

Thanks for your information ghacorp. Does a trustee typically come out and inspect the property and are they the ones that would put an actual value on the property, not an appraiser?

We also have 3 cars that are all probably valued under 4,000 total, if we are still under our exemption allowance would we be allowed to keep all the cars or would they frown upon that and still try to liquidate one of them?

Thanks for your help. I'm just trying to get as prepared as I can because me and dh are planning on filing BK7 in a week or so.

Maekenzie

Link to comment
Share on other sites

No, Trustees do not come and inspect your property, but they do have their own sources to consult as to the valuation of that property. I have seen cases where the Trustee HAS hired and sent an appraiser out to the property, but that's only been where there's a big argument over the value.

If the exemption amount will allow you to exempt all the vehicles you may succeed in keeping them all, but most states only allow the exemption for ONE vehicle. Worst case you'll lose at least 1 vehicle, or you could offer to REDEEM it by paying the Trustee the current market value for it to keep it.

Link to comment
Share on other sites

  • 2 weeks later...
No, Trustees do not come and inspect your property, but they do have their own sources to consult as to the valuation of that property. I have seen cases where the Trustee HAS hired and sent an appraiser out to the property, but that's only been where there's a big argument over the value.

Correct. I'm involved in a squabble over home value and the trustee sent a realtor out. The guy spent about 5 minutes looking around and then went back and gave the trustee a very high number. Just got the letter from the trustee indicating he either wants the house or suggests I get a refi and pay him cash for whatever interest (unspecified) he seems to have in the house.

It only feels like extortion.

BTW, I used the tax valuation for the house and got beat up over it. My lawyer said that it's been used in the past and can cite a court case that allows this. But the argument from the trustee's view is more focused on FMV, not some notion of what they would have when all costs, exemptions, etc. are subtracted.

My head hurts!

:cry:

Link to comment
Share on other sites

Guest
This topic is now closed to further replies.
 Share

×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.. For more information, please see our Privacy Policy and Terms of Use.