Have you become so bankrupt that you cannot even file for common bankruptcy? Then, you are not alone. According to statistics, millions of Americans are so financially strapped that they cannot declare common bankruptcy. In such a case, you should consider filing for bankruptcy under special circumstances.
How can you file for bankruptcy under special circumstances?
The bankruptcy process involves providing a financial snapshot of your current income, debts and other financial obligations to support a claim of your financial troubles. Acquiring a bankruptcy appraisal on your home is a vital part of that process.
So, what is the importance of filing the right kind of bankruptcy appraisal?
If you are declaring Chapter 7 bankruptcy, then you need to be prepared for possible consequences, including a low credit score and the loss of your home. In the case that you declare bankruptcy under Chapter 7 of the bankruptcy code, you will need to be prepared to surrender your property. If you have already received a financial discharge in the past five to eight years, you will not be eligible to file for bankruptcy under Chapter 7.
If you are filing for bankruptcy under Chapter 13, however, you may have fewer problems as compared to filing Chapter 7.
Chapter 13 bankruptcy is not for everyone. If you file under Chapter 13, you will need to use your income in order to repay either some or all of your debts. You will be required to prove to the court that you have the ability to repay your financial obligations.
How will you know whether or not you have to surrender your property after filing for bankruptcy?
Many local Atlanta attorneys report that most of the trustees who oversee personal bankruptcies elect for a simple broker’s opinion of value, deeming it unnecessary for a detailed bankruptcy-specific home valuation to take place. This is your home, however. We advise speaking with your attorney and weighing how a customized, expert valuation of your home could help your case.
If you decide to forgo a pre-declaration bankruptcy appraisal, you may need to get one at some other point in the process. An appraisal report is sometimes necessary in order to determine the secured status of a claim under section 506(a) and (b) of the bankruptcy code or when trying to avoid a judicial lien under section 522(f).
If you are still not sure whether you will lose your property after filing for bankruptcy under Chapter 7, then you will need to get in touch with a bankruptcy appraisal specialist or a bankruptcy attorney. They will not only advise you of the options regarding your property, but also help find a winning strategy to ensure the success of your bankruptcy declaration.
When you and your lawyer develop your bankruptcy strategy, the choice of filing chapter and the value of your major assets play a huge part. If you decide to work to keep your home, call us at Alpharetta Home Appraiser at 678-791-4532. Alpharetta Home Appraiser has the experience and qualifications to meet all of your appraisal needs.