Dispute over property value
Posted: Tue May 14, 2013 3:42 pm
The only relevant value is what the property will fetch on the open market. The trustee will be permitted to retain a broker and list the property. If your clients are like most of mine, they are probably extremely concerned about this turn of events. I would strongly advise them to convert to a 13. Your valuation has a much better chance of holding up in a 13 - and since they are presumably under median or negative disposable income, you can propose of 36 month plan for under 200/month. This way they get out of the bind for less than $7200 and you can earn additional fees for saving them. Also, if you try to call the Chapter 7 trustee's bluff and wait too long, the case may discharge and you could lose the option to convert.
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> Dear Listserv
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> I have a situation which I have not encountered before and need assistance.
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> My clients filed chapter 7, listed their residence's value at $290K with a first mortgage of $310K, I filed under 703. The trustee has informed me that he believes the property to be worth $350K and has filed his report re possible distribution.
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> My clients are getting their property appraised this week which I informed the trustee and offered to provide the appraisal upon receipt. He has informed me that his position is, when debtor challenge his valuation, is to list the property for sale with a broker and see what happens.
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> If I amend to 704, I can protect the residence but cannot exempt his vehicles. Based on my liquidation analysis, their exposure is approx $15K, plus trustee's fees, etc. I am trying to avoid having to convert to a 13.
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> Can I challenge the trustee's valuation? It seems that he's just going off the internet values. If so, I would appreciate any guidance possible, I'm at a loss.
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> As always, thank you for your comments.
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> Silvia
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The post was migrated from Yahoo.