Q: Ch. 7 - Redeeming Auto

A: It depends on your trustee, but I've never had one challenge Kelly Blue Book, so don't waste your money on a more formal appraisal unless your car is in really bad shape, making it worth (in your opinion), less than the lowest blue book value. Also, so long as your equity in the car is less than the allowed exemption, there is no need to establish any other value. The Court does not get involved in the valuation; only your trustee.

A: Most likely the appraisals you have will suffice.

A: In a Chapter 7 bankruptcy case, when redeeming an auto, appraisals from sources like Kelly Blue Book, NADA, and CarMax are often considered credible and can be used to determine the vehicle's value. These sources are widely recognized and provide a good indication of the current market value of a vehicle.

However, the court may sometimes require or prefer a certified auto appraiser's evaluation, especially if the value of the vehicle is contested by the creditor or if there are unique aspects to your vehicle that are not adequately addressed by standard appraisal methods.

If you have appraisals from Kelly Blue Book, NADA, and CarMax, it can be a good starting point. You should present these appraisals as evidence of the vehicle's value in your motion to redeem. Be prepared, though, for the possibility that the court or the creditor might request a more detailed appraisal from a certified professional.

It's also advisable to consult with your attorney about the best approach in your specific case. They can provide guidance on the likelihood of your appraisals being accepted and advise if a certified appraisal would be beneficial in your situation.

Remember, the goal in redeeming an auto in Chapter 7 is to establish a fair market value that is acceptable to both the court and the creditor. Being thorough and prepared with your appraisal evidence will help support your case.