For most of the people, having a car is essential. When filing for bankruptcy, many people think about whether they can keep their car or not. Bankruptcy affects your reputation, future credit, and self-image. But it is also about having a chance for a fresh start and having control over your finances. One of the step to do is to establish the bankruptcy car value for the court. A challenging task is to find the right auto appraiser. There are many questions that arise when deciding the auto appraiser. Will the appraiser properly analyze the market? Will they consider all the comparable vehicle options and overall condition? Will the appraisal report provide enough information so the bankruptcy court will accept the appraisal report? Here are few things that you should know about auto appraisers.
When you file for bankruptcy, your car is not automatically sold. You can keep your car if you meet certain criteria. Chapter 7 bankruptcy wipes out your unsecured debts, personal loans or outstanding medical bills. You are allowed to keep the property that your state decides. Probably items that you will need to work or maintain a household. The trustee will give up you nonexempt items to repay your unsecured creditors.
How Much is Your Car Worth?
The first step is figuring out the bankruptcy car value. In bankruptcy, your car is worth the amount you can sell it for given its condition. In order to prove bankruptcy car value, you can pick an auto appraiser. Factors that determine the bankruptcy car value are:
- Model of the car
- Modifications
- General appearance
- Custom features
An appraisal is the most accurate reflection of your car’s value. Usually, an appraisal is most useful when your car value is close or above your exemption.
Things an Appraiser Should Keep in Mind
The difference between the chapter 7 and 13 of bankruptcy is the credibility. The credibility of the appraiser and their appraisal report is of great significance. The reliability of appraiser depends on the type of valuation reporting format opted and method of valuation. The appraiser should keep in mind that the method opted for valuation should be verified. And cannot solely be based on the opinion of the appraiser. Moreover, an appraiser must be certified and abide by the standards of Uniform Standards of Automotive Appraisal Procedures.
Auto appraisal services are the best pick because they are experienced in dealing with necessary requirements, which are required to complete an appraisal for bankruptcy proceedings.