A professional equipment appraiser possesses the skills, credentials, and knowledge necessary to conduct an impartial, third-party equipment and machinery evaluation. When working with an American Society of Appraisers-accredited appraiser, you can expect to receive a summary appraisal report with substantiated and realistic values. AMEA is another organization that certifies appraisers.
A bankruptcy appraiser with little or no experience in bankruptcies may not prove to be a bargain in the end, despite the fact that you may be compelled to save money by employing a less experienced appraiser. Choose wisely and ensure that your equipment appraiser has knowledge and understanding of the bankruptcy process to ensure that you receive the most accurate appraisal possible. Absorption and Level of Trade (a.k.a. Premise of Value) are two factors that must be considered during a bankruptcy equipment appraisal.
In addition, an experienced equipment appraiser will be aware of the possibility of what the IRS refers to as """"blockage,"""" also known as """"absorption rate"""" - a common issue when attempting to quickly liquidate a large quantity of similar equipment, such as a fleet of Peterbilt trucks. I'll elaborate on this topic in a separate post, but make sure that your equipment appraiser is familiar with this concept, particularly if your company has a large inventory of items that are very similar.
Level of Trade: A bankruptcy valuation must be founded on the appropriate level of trade or value premise. Most bankruptcies require the use of Forced Liquidation Value, which is frequently lower than Fair Market Value.
Work only with a trained equipment appraiser who adheres to the regulations and ethics of the Uniform Standards of Professional Appraisal Practice (USPAP). Be aware that a person's claim of USPAP compliance or a report's assertion that it is USPAP compliant do not necessarily imply compliance. Verify that the USPAP classes listed on the curriculum vitae or resume of your equipment appraiser are current.
Confirm with your Insolvency Lawyer
Take the time to consult with your attorney regarding the scheduling of the appraisal and the asset inventory (items to be included in the appraisal) once you've located a qualified professional appraiser for your bankruptcy appraisal. In addition, it might be a good idea for your equipment appraiser to speak with your attorney in order to clarify the trade level, asset inventory, and any unusual bankruptcy-related details. In bankruptcy proceedings, communication is essential for achieving the best outcomes.
In a bankruptcy situation, as in any situation where an equipment appraisal is required, it is important to work with someone who understands your needs and has experience providing accurate and unbiased information that is clearly presented and adequately documented -- in other words, the type of appraisal you'll need for bankruptcy filing.""
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