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Personal Property Appraisal as part of BK proceedings? HELP

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Latest post Mon, Nov 23 2015 6:42 PM by danny sander. 10 replies.
  • Thu, Sep 17 2009 8:02 AM

    Personal Property Appraisal as part of BK proceedings? HELP

    Our bankruptcy has been plagued by difficulty. First we were selected for a random audit, which our lawyer says, rarely happens (We passed). Now we are being singled out for a personal property appraisal, which, our lawyer tells us, also rarely happens.

    We are only allowed $1,000 each for a total of $2,000 worth of personal property exemptions. Well, we are a family of 5 living in a 2 story house. Although we don't own anything valuable, we own a LOT of stuff. I'm worried that the appraier is going to say we own more than $2,000 worth of stuff, just becaue of the amount of stuff. Our lawyer tells us this is "no big deal," but of course it's not a big deal to him, he doesn't risk losing anything. This is a very big deal to us. Our lawyer says we will have the opportunity to "buy back" anything over the $2,000 exemption. Unfortunately, my husband's salary was just cut significantly. Between his salary and mine, we barely have enough to pay the bills and living expenses, plus we have a baby due in January. We couldn't afford to buy back anything, nor could we afford to replace anything that was seized. Is there anything we can do to avoid this? Can we get some sort of hardship appeal?

    Between our first and second mortgage, we owe $232,000 on our house. According to zillow.com, it's worth $239,000. So our Homestead Exemption is only protecting about $7,000 worth of equity. Can we increase our personal property exemption base on this?

    We didn't want to file bankruptcy. We filed bankruptcy because we had no choice. We thought we could protect our assets and get a fresh start. Now we have to live through the humiliation of having our modest homegoods appraised and potentially seized for an auction to be sold for pennies on the dollar?! Any money made by the sale of our stuff wouldn't even be a drop in the bucket of our debt (roughly $75,000). None of our creditors contested the BK. So what is the point of torturing us and leaving us with an empty house?

    We are terrified.

    Any advice, suggestions, similar stories, ideas on what to expect from this process?

    Thanks!

  • Mon, Sep 28 2009 4:12 PM In reply to

    • Kivi
      Consumer
    • Top 25 Contributor
    • Joined on Sat, Jan 1 2005
    • CA
    • Posts 6,363

    Re: Personal Property Appraisal as part of BK proceedings? H...

    The chances are good that even if your stuff exceeds $2,000, the costs of administration will also be figured in here. 

    It is not going to be cost effective for the trustee to spend $5,000 to sell $4,000 worth of goods.

  • Mon, Sep 28 2009 4:47 PM In reply to

    • Drew
      Consumer
    • Top 10 Contributor
    • Joined on Thu, Mar 30 2000
    • PA
    • Posts 51,431

    Re: Personal Property Appraisal as part of BK proceedings? H...

    The value of used furniture and old bedding is nearly zippo  depending on how one views it.



  • Sun, Nov 15 2009 12:00 AM In reply to

    Re: Personal Property Appraisal as part of BK proceedings? H...

    OMG.....Blue Butterfly. I read your post and thought I was having deja vu..We had our 341 meeting and everyone before us had no issues so we felt great. It was our turn and OMG.. my worst nightmare come true. Not only did our witch of a trustee order an appraisel of personal property she also ordered to get our 2009 Federal Tax Return. Which means if we are due for a refund she will stop us from getting a return. We like yourself are a family of 5 in the same exact boat, reading your story was like I was telling my story only I'm not expecting. We have nothing. And we can't afford to buy back our belonging either. I have been crying for days and have been a nervous wreck since Tuesday. Have they already appraised your household items. Can you tell me what happened. I have searched all over the internet for help and your story was what I am going through. Please tell me how things went. I am a mess. I too feel that we are being tortured, we didn't ask for this I lost my job, my husbands company cut back hours. Its aweful and now we have to go through all of this. We are trying to get back on our feet. Our mortgage is behind and so are our utilities. 

    I hope you can reply to me so I can eat and sleep. I fear the unknown.

  • Sun, Nov 15 2009 12:02 PM In reply to

    Re: Personal Property Appraisal as part of BK proceedings? H...

    butterfyangel:
    Not only did our witch of a trustee order an appraisel of personal property

    Talk to your lawyer about this. CT does not appear to have dollar limits on personal property exemptions and "household furniture and appliances" could cover a lot of territory:

    Sec.52-352b:

    http://www.cga.ct.gov/...

    butterfyangel:
    she also ordered to get our 2009 Federal Tax Return. Which means if we are due for a refund she will stop us from getting a return.

    Then you need to figure up your potential refund NOW so you can reduce your withholding for the rest of the year which would, in turn, reduce your refund.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Sun, Nov 15 2009 12:59 PM In reply to

    Re: Personal Property Appraisal as part of BK proceedings? H...

    I must of made a typo when I typed my zip.. I live in florida..

  • Sun, Nov 15 2009 1:06 PM In reply to

    Re: Personal Property Appraisal as part of BK proceedings? H...

    butterfyangel:
    I must of made a typo when I typed my zip.. I live in florida..

    Bummer.

    Florida appears to have a flat $1000 exemption for personal property.

    However, my response is the same for the tax refund.

    You can edit your profile to correct your Zip Code. Your post still says CT.

    • The right of the people 
    • to keep and bear arms,
    • shall not be infringed.
  • Fri, Feb 5 2010 10:11 PM In reply to

    Re: Personal Property Appraisal as part of BK proceedings? H...

    I felt so bad for you folks I had to sign up to this site to answer this question.  I live in Florida and am not a lawyer.  I've worked for lawyers for the better part of the past 30 years.  I was researching how to get into the appraisal business when I accidently found this question.  About ten years ago, in one of my "I can't stand lawyers anymore stages", I worked for a property appraiser.  The appraisals done for bankruptcy were done using "garage sale" values.  Therefore, dresses were worth a nickel, your entire linen closet might be worth $3.00, same for your television.  How much would you spend for your kids' stained clothing?  Also, most appraisers aren't going to list every single, solitary thing in your house, (e.g., one salt shaker: $.00075).  The bankruptcy courts are so overloaded, they don't have time for that sort of thing. Also, since technology changes so fast, your electronics aren't worth a whole lot anyway.  If you're worried about heirloom antiques, Rolex watches or jewelry, they can't be included on the report if they aren't in the house, (wink, wink).  You sound like good, honest people so I don't forsee a problem.  Oooops, I see this post is several months old.  I'd be interested in the outcome of your situation. 

    I hope this helps someone.  I now have no job, so I may end up in bankruptcy court myself.  I've already turned the ringer off the phone since the creditors won't stop calling, I  know that sick, guilty feeling in the pit of your stomach.  Hang in there.

  • Sat, Jul 18 2015 2:40 AM In reply to

    • herald evan
      Consumer
    • Not Ranked
    • Joined on Sat, Jul 18 2015
    • CA
    • Posts 2

    Re: Personal Property Appraisal as part of BK proceedings? HELP

    The condition of the house deffinitely contribute to the value of appraisal price, the facility and furniture mostly added but, but for some appriaser, these are free provided the vaue of house being raised up.

  • Sat, Jul 18 2015 10:53 AM In reply to

    Re: Personal Property Appraisal as part of BK proceedings? HELP

    Hi harold evan.

    Welcome to the forum!  

    We all make this mistake, so no worries, but you probably will want to take a look at the date on the posts before you respond to them.  If the post is a year (or 5 or so years) old, the person and problem likely aren't coming back here to read your comments.

    Anyway, good luck, and welcome again!

     

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