Appraisals are sometimes necessary when determining the secured status of a claim under section 506(a) and (b) of the bankruptcy code, or when avoiding a judicial lien under section 522(f).
Under section 506, a secured claim (e.g. a mortgage, an equity line, or a tax lien) is only secured to the extent of the value of the property. For example, a house with a first mortgage balance of $400,000 and a second mortgage balance of $50,000 is worth only $385,000. A bankruptcy appraisal would be used to make the case that the second mortgage is unsecured, and therefore its lien can be removed and it is treated as a general unsecured claim, which is much lower on the pecking order.
There are many nuances and caveats to this process, but generally, a bankruptcy appraisal is only necessary where value is likely to be in real dispute. This is when you or your attorney need to hire the services of Commercial Appraisers of Atlanta to estimate the fair market value of the home. In cases where the value makes a difference, having a qualified appraiser who can give clear testimony can be extremely important. The bankruptcy appraisal should include a well-supported, professional report that is defensible in court. State and federal laws require that the appraiser and the bankruptcy appraisal process must be independent from any influence, coercion, or pressure. This ensures that the appraiser remains a truly independent third party.
When working with Commercial Appraisers of Atlanta, rest assured that you will get the best in professional service and courtesy, while also receiving the highest quality bankruptcy appraisal reports. Call Commercial Appraisers of Atlanta directly with any questions concerning your bankruptcy at (404) 692-5450. We have the experience and qualifications to meet all of your appraisal needs.
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Get in touch with us today by calling (404) 692-5650 or by submitting an online appraisal request. You will speak directly with a local, knowledgeable expert appraiser.