Who pays for a car or boat appraisal - trustee?

[jessica0607]

I read a post where a debtor had to pay to have his boat / car appraised? Does this sound correct? I would think the courts would have someone perform this task and pay? Or is this only if you are interested in keeping the asset?

[debtmonster]

I didn't pay a dime. My attorney looked up the price of my car on KBB and put the "good" price.

For my house, I just estimated it and the trustee didn't blink an eye at my 341.

I could not afford to pay to have anything appraised at the time.

[67caprice427]

I did my own appraisal and my 2 vehicles were both deemed " abandoned and of inconsequential value" by the trustee. Woo-hoo, I've never been more pleased to be driving an old vehicle, and both were tagged and insured late 70's four wheel drive trucks. My almost brand new car trailer was valued at less than 50%.

[jessica0607]

Hi Debtmonster - what year was your car? Was the good value based on private sale or dealer / trade in?

[debtmonster]

Hi Debtmonster - what year was your car? Was the good value based on private sale or dealer / trade in?

2007 and $4600 the lawyer put, but that was being in "good" condition. As stated in another post, my car now has a cracked windshield. This car has been modified. It will have some interior panels missing when it gets turned in, plus the stereo won't work.

I went to CarMax and they said that it was worth $4500. If I can convince GMAC to give me the title for $4,000 as a settlement, I'll do it. I am betting that they will just want to repo the car and take their chances at the auction. These people have seemed to be morons to deal with. I'll tell them everything they will be up against at the auction if they still wish to take the car from me instead of giving me a title after discharge.

[jessica0607]

Hi Debtmonster,

When I go to kelly blue book, it list values based on condition like you mentioned yours as being "good" - but also three categories - Dealer, Private Party, or Trade in - which did your attorney use to get the $4600? I think it ought to be the lowest which is trade in - I imagine like the auction value. If they bring a car to the auction - the - UST also have to pay the auction fees and towing / delivery as well if one has the title outright like in my case for a 2005 Explorer.

[debtmonster]

She used the KBB Trade-In. That's what a dealer would pay if you came. The auction price should be a LOT lower because the people can't test drive the car. They have no idea if the car has transmission problems or not. It's a total gamble like that on a high mileage car.

[HHM]

Whether you need an appraisal depends on what you want to do with the items.

Generally speaking for items such as cars, an appraisal is not necessary; same goes for boats. But, when you list a value of an asset on your BK petition, you need a good faith basis for the number you assigned, but a full blown appraisal is usually not necessary.

But, if you are close on an exemption, or trying to do a cram down, sometimes an appraisal is necessary so you have some ammunition if the trustee or bank disputes the value you initially assigned to the assets in your BK petition.