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How's my house resale value determined in chapter 7 bankruptcy? Market analysis by a realtor okay or need an appraisal done ?

Oakfield, WI |

I live in Wisconsin and own my house free and clear but will be filing chapter 7 bankruptcy. I know there is an exemption of $75000 for WI. citizens. How will my house's resale value be determined ? My property tax bill is not accurate at all. It states my house at fair market value is worth $95100. I had a realtor come and had a market analysis done and the house is only valued at $65000 now if it was up for sale on the market. Will that be sufficient evidence to use in my bankruptcy for the resale value of my home or do I need to actually get a certified appraisal done ? I don't want to lose my home and just want to show how much the true value of my house is only worth not what the tax bill claims it is worth. The difference in these two figures means me either keeping my house or not.

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Attorney answers 1


What serves as good evidence of resale value depends on the district, the best way to know whether a market analysis is sufficient is to ask your bankruptcy attorney. They will know what the trustees tend to accept. If they say you should get an appraisal, then you should get an appraisal. You don't want to be in a situation where the trustee thinks there is more equity than there really is.