Value of Real Estate

Value from Internet

The value of a home is the Fair Market Value (FMV) of the home. Most attorneys will use Zillow to calculate the FMV, especially in cases where there is absolutely no equity in the home. This is accepted by most trustees in the Central District of California when determining whether there is equity.

Value from Appraisal

However, in more complex situations, such as Motions to Avoid Liens (judgment liens or second mortgages), or cases where your home has equity, an actual appraisal is needed or required. If the home has equity, and you are trying to exempt the equity, than the idea is to determine the amount that the trustee/creditors will receive after selling the home. The value that you could receive on a sale is calculated by deducting cost of sale, fees and other expenses that will be incurred when selling the home at FMV.

A good bankruptcy attorney will know the amount of deductions that are commonly accepted by trustees. This will allow the attorney to give you better advice as to how you want to approach the bankruptcy. This is extremely important because the value of a home can determine whether you should file Chapter 7 or Chapter 13, whether you might lose your home in bankruptcy, or whether you can avoid a second mortgage or judgment lien.

Anyone who owns real estate or a home should speak with an attorney before filing bankruptcy.  They will be able to give you an idea of whether you can save your home or not from liquidation.