Bankruptcy Appraiser

In bankruptcy, both debtors and creditors may benefit from the services of a bankruptcy appraiser. From the debtor's perspective, it is sometimes a good idea to argue down the value of real estate in order to keep it from being seized for paying creditors. In federal bankruptcies, there is a small amount of real estate that can be owned without this risk, but if it's worth more than that, it will be auctioned. Getting bankruptcy appraisals that show that the real estate is under the cap can be worth it for properties that are of marginal value. Marginal properties can often be valued high or low, so it's best not to leave doubt if you can show that they're on the low side.

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In other cases, a debtor may want to show that a property is worth more. This would typically be done in order to offer it to the court in lieu of other valuables in order to settle the bankruptcy or to diminish the amount left to pay in a reorganization.

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For creditors, bankruptcy appraisals can help in getting more favorable judgments from the court. If the goal is to try to recoup funds by selling off property, an appraisal can show whether or not it is worth pursuing a particular piece.

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As you can guess, a bankruptcy appraiser's clients want him to try to advance their agenda and not the opposition's. Therefore, both debtors and creditors may hire their own bankruptcy appraisers, and each of them will get different results. Then, both appraisals can be submitted to the court, which will decide on the valuation it considers to be the most realistic. The case will then proceed using that figure.