Bankruptcy

A bankruptcy appraisal is required when real property is part of a bankruptcy estate. Common scenarios: Chapter 7 trustees need values for liquidation analysis, Chapter 11 debtors need values for reorganization plans, Chapter 13 filers need values for plan feasibility, and creditors need values to challenge or support debtor claims. The value typically must be effective as of the petition date or another court-specified date.

Yes. Bankruptcy appraisals are USPAP-compliant and structured to meet bankruptcy court evidentiary standards. We’ve completed appraisals for Chapter 7, 11, and 13 cases in the Central District of California Bankruptcy Court. Reports include detailed comparable sales analysis, adjustment grids, market conditions support, and reasoning that withstands scrutiny from trustees, creditors, debtors, and the court.

Fair market value assumes a reasonable marketing period and a willing buyer and seller. Liquidation value assumes a shortened sale timeline (often 90–180 days) and may reflect a discount for forced sale conditions. Bankruptcy cases sometimes require both values depending on context. We clarify upfront which value standard applies and structure the report accordingly.

Any party with standing can order an appraisal. Most commonly the debtor orders it as part of the bankruptcy filing or plan submission. Trustees order appraisals in Chapter 7 to determine whether equity exists for the estate. Creditors order appraisals to challenge debtor-submitted values when they suspect undervaluation. We work for whichever party engages us and maintain neutral, USPAP-compliant methodology regardless.

On average, a bankruptcy appraisal takes 3–4 business days from inspection to completion. Rush options are available for bankruptcy court deadlines. The earlier you engage us, the easier it is to schedule the property inspection and gather any historical data needed (especially for retrospective valuations to the petition date).