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Terry L.
Terry L., Attorney
Category: Bankruptcy Law
Satisfied Customers: 2870
Experience:  Better Business Bureau. 18yrs bankruptcy experience. Chicago Bar Assoc. American Bankruptcy Institute member.
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I live in California. I am in a Chapter 13 bankruptcy, attempting

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I live in California. I am in a Chapter 13 bankruptcy, attempting to strip a 2nd TD. Property values in my area have been rising rapidly following my BK filing date. The bank's appraisal was based on "comparable" properties that were listed and sold 1-3 months after my BK filing date. The resulting bank appraisal is much higher than my appraiser's valuation, which was based on comparable properties sold before my Chapter 13 filing date. Are there any regulations or case law defining what can be used as a comparable relative to the Chapter 11 filing date?

Terry L. :

Hi, thanks for your question. You should hire a lawyer for specific legal advice. No attorney client relationship is created here.

Terry L. :

There is a split of decision on whether the petition date or the motion date is the correct date for valuation.

Terry L. :

In re Vallejo, 2010 WL 520698 (Bkrcty.N.D.Cal.); In re Dean, 319 B.R.
474 (Bankr. E.D.Va. 2004)(petition date is appropriate date to value
debtors’ principal residence for lien stripping)

Terry L. :

You should talk to a local bankruptcy lawyer to review your particular judge's rulings and any others in the district you are filing the case in.

Terry L. :

So, under Vallejo in the ND of Calif, the petition date controls, and the appraisals should reference that date and be able to testify to the valuation as of that date.

Terry L. :

It may come down to a valuation hearing and credibility of testimony of the appraisers at the hearing.

Terry L. :

Let me know if you have any further questions.

Terry L. :

Thanks good luck!

Terry L. :

Terry

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