Equipment Appraisals in Bankruptcy
Bankruptcy is an incredibly stressful process. You lose control of your assets, you can only keep a small portion of what you once owned and you are left feeling like the world is against you. If you don’t provide the courts the right documentation or if the information doesn’t meet the needs of the financial companies involved, the stress and anxiety of the process is compounded. There is a simple way to make this process easier and a little less stressful, and that is a certified equipment appraisal.
Why Are Certified Appraisals Better?
If your business’s equipment is in great condition and has been well cared for, it probably is worth more than the general book value. While your creditors or the court may not have a problem with your decision to use the book value for your equipment valuation, you may find that having a certified equipment appraisal will allow you to meet your creditor needs while giving up fewer assets. Beyond this, the information provided in a certified equipment appraisal will hold up better in court, since the information has been provided by a non-biased, professional. This neutral position means that they aren’t going to gain anything from the outcome of the court proceedings, and this is always an asset to your case.
Gain Some New Knowledge
While it may not seem like a good time to be learning about how your equipment is appraised, it may be helpful knowledge in the future. By paying attention to what your appraiser looks for, you can get a better understanding of the kinds of information that are helpful in various appraisal situations. This can help you care for and maintain equipment better in the future. It can also tell you what sorts of modifications or equipment extras give you the biggest bang for your dollar. As you start rebuilding your business, this can be exceptionally helpful when it comes to how you manage your finances.
Acceptable Methodologies
Liquidation value is the most common value used in bankruptcy proceedings. This method of valuation is not the only one that is acceptable under bankruptcy codes. Other methodologies that can be applied in bankruptcy proceedings include: value in use, net realizable value, trade-in value or some other value that is applicable to your situation. A certified and experienced equipment appraiser will know which method is best for both your legal situation as well as the type of equipment that they are dealing with. This will not only give you the best value for your assets, but it will also be easier for the court to accept.
No one wants to go through bankruptcy proceedings. They are challenging and stressful. Most of all they can make you feel lost and defeated. To make the process easier, it is in your best interest to ensure that you are getting the best possible value for your assets. This can help you resolve bankruptcy proceedings as easily as possible and protect your business interest as much as possible during the process.
I Need An Experienced Michigan M & E Appraiser!
R Stout Appraisers is experienced in providing equipment appraisals for a variety of uses. Whether you are in the middle of bankruptcy proceedings or you just need to determine the value of your business assets for a loan or sale, we can help. For more information on our appraisal services or to schedule an appraisal, please contact us today at (248) 978-8338.