An accurate property value can help you determine if bankruptcy is your best option, and can help you protect this important possession during the process. In New Orleans, any amount of equity in your home over $35,000 will not be exempt from your bankruptcy. However, if your financial duress was caused by a natural disaster, you may qualify for a higher level of exemption.
Determination of Equity in Your Property
It is imperative to have an accurate property value to determine the amount of equity you have prior to filing for bankruptcy. Once you have the current property value, you simply deduct the amount you still owe on your mortgage to determine the amount of equity. If the equity in your home exceeds the exempt amount, then Chapter 7 bankruptcy may not be the best option. Chapter 13 may offer a better option for a fresh financial start.
Different Methods to Determine Property Value
- Full house appraisal – this method provides the most accurate value of your property and requires a recent appraisal of your home.
- Comparable Market Analysis – this method is not as expensive as a full house appraisal and can be used if you are not attempting to strip a lien in your bankruptcy. An analysis will be conducted based on the sale of homes close to your location that are similar in size, style and condition.
- Website analysis – this method will provide you an informal property value that may help you decide if you need to pay for a full house appraisal.
Steer clear of relying on local property tax appraiser values or quick sale values as neither will provide an accurate property value.
New Orleans Bankruptcy Guidance
New laws and exemptions come into consideration quite often in New Orleans and throughout Louisiana regarding bankruptcy exemptions and property values. Rely on the expert guidance of a bankruptcy attorney at Grand Law Firm to ensure your property is protected in the bankruptcy process. Call today to schedule your consultation.