Knowing your car’s worth can make a big difference when filing for bankruptcy. Valuing your car is a vital part of a bankruptcy case. When filing for bankruptcy, it is a must that you include every relevant detail to guarantee a smooth, stress free case. Details include everything you own and the value of each item. For car owners, using the right appraisal company could be the major difference between retaining the ownership of your car or forfeiting ownership to the trustee.
Basically, there are standard method for bankruptcy car value, and which standard best suits your case depends on the bankruptcy law guiding your municipality. Amongst the many valuation methods, retail replacement value is the commonest. The retail replacement value is the amount you’d probably pay for a car with similar features and conditions in the market today, as of the day you file for bankruptcy case.
However, there are other valuations methods. This varies depending on the bankruptcy law in your area. It makes sense to find out the different valuation methods in your area. Other valuation methods include the private party value, which is the exact amount you would pay if you purchase the car from a private party, and trade-in value, which is the value a dealer would apply if you decide to replace the car with a new one.
Regardless of the standard, bankruptcy car value can be determined using many different ways. These include
Sale price. Surf the internet or read the magazines to see the current market value of cars with the same age, make, model and condition as yours. Though it is impossible to get the right market price using this valuation method, but it is sufficient in most situations.
Another method is blue book value which entails using reliable trade publications such as the Black Book or the Kelly Blue Book. These publications are usually up to date so there is every chance of finding the retail value of your car with similar conditions and features as yours.
And lastly, a formal appraisal. secure the services of a professional appraiser to give a reasonable assessment of your car, note its condition and give you are reliable appraisal based on your vehicle’s make, model, age and condition. The most reliable method for knowing the real bankruptcy car value is by hiring an appraiser.