When filing for bankruptcy in the state of Connecticut, a house appraisal is usually required. The appraisal helps determine the fair market value of the home and determine payments to creditors. The court will also need to know if your home equity exceeds Connecticut’s homestead exemption.
Appraisals are not always necessary but attorneys will typically recommend one if you have significant equity near the exemption limit, the home’s value is unclear or fluctuating or if there is a risk that the trustee might disagree with your valuation.
A benefit to having a professional appraisal in the case of a bankruptcy is that the appraiser can be called into court to defend their report if the value is questioned. This relieves the homeowner from the pressure of having to prove this valuation independently, often an intimidating task.