How to Value Your Home in Bankruptcy

Deciding to declare bankruptcy is a difficult decision that can help you get a fresh start with your finances and debt. When people first start thinking about whether or not declaring bankruptcy is right for them, they need to evaluate all of their debts and assets. Homeowners are in a unique situation where they must take steps in order to protect their home during bankruptcy proceedings. The good news is that working with a professional with years of experience in the bankruptcy process, such as Brent George Law, can help you navigate this confusing process. With helpful advice from a law firm skilled in all things related to this type of financial procedure, you can come out on top after making your declaration.

Protect Your Home

Before you go through with the bankruptcy process, it’s important to determine whether or not your home may be protected. There are two different types of common bankruptcy filings, Chapter 7 or Chapter 13. Depending on the laws of your state, you may have some protection from something called the homestead exemption. For those who have equity in their homes, this legal exemption can help protect your asset. Each state has a specific limit on the amount of exemption you could qualify for. Essentially, once you get a value on your home, you must subtract the balance of your mortgage in order to find out your home’s equity. If your equity amount falls under the homestead exemption allowance, your home may be protected. If your equity is more than the allowance, your home may be at risk.

How to Determine Value

Homeowners can help determine if their home is going to be at risk during bankruptcy proceedings by finding out an accurate value. Here are some common ways you could find out the worth of your home:

  • Official Appraisal – Determine the value of your home by hiring a licensed home appraiser to conduct a full appraisal. This option may cost more, but it is quite accurate.
  • Market Analysis – For this method, your home’s value is calculated in relation to the current real estate market in your area and compared to other similar properties that have recently sold.
  • Historical Sales Data – Online, there may also be information regarding recent home sales in your neighborhood. This can also be used to find out what your home is worth.

No matter which method you choose to value your home, it’s important to conduct this step during the bankruptcy proceedings in order to keep your home in your possession. Brent George Law can give you the necessary tools to help you get through this challenging time in your financial life. Give us a call for a free consultation.

2019-05-09T17:02:12+00:00May 25th, 2016|