Bankruptcy equipment appraisals in the Sacramento and Northern California area are not my favorite part of the equipment and machinery appraisal business; nevertheless, I regularly find myself on the phone with either a business owner or a bankruptcy attorney, working out the details for a Forced Liquidation Value equipment appraisal for an agricultural business, a manufacturing plant, factory, construction or excavating business, or a speciality production shop.
If you’re a business owner wondering whether it’s time to talk to a equipment appraiser regarding an appraisal of your business assets and equipment–whatever kind of business you may be in–do yourself a favor and call a bankruptcy attorney before you call me.
Legal Advice for Business Bankruptcy
Business owners considering bankruptcy owe it to themselves to get in touch early in the process with a good Bankruptcy Attorney. Some of the Bankruptcy Attorneys I work with in Redding, Auburn, Sacramento, Oakland and Salinas report that most of the clients they represent in Chapter 7, Chapter 11 or Chapter 13 cases have waited too long before calling for legal advice. Trying to delay or avoid an actual bankruptcy, some folks have already borrowed money from relatives and friends, run their charge cards up to the limit to keep their businesses going, cashed out or borrowed against the funds in their retirement plans, and — in some cases — sold the business’ machinery and equipment, often at lower than market prices, often not realizing that in some business bankruptcies, they might have been able to retain enough equipment to continue to operate a restructured company. Ouch!
None of these options would be recommended by a Bankruptcy Attorney. In fact, many of these actions could result in a business owner actually losing some of the benefits from a bankruptcy filing. It’s even possible that someone could be disqualified altogether from filing bankruptcy in certain situations, according to some Bankruptcy Attorneys.
Planning for an Equipment Appraisal
One action your Bankruptcy Attorney will want you to take is scheduling a USPAP equipment appraisal with an accredited, certified equipment appraiser. Your attorney will advise you on timing for your equipment appraisal, but it’s important to remember that you will need to pay your equipment appraiser for the USPAP report you’ll need. Many folks, when going into a bankruptcy, have put aside enough money to pay legal fees. Remember that there will also be appraisal fees & put aside enough money for that as well. More than one business has called for a bankruptcy equipment appraisal long depleting all cash reserves trying to keep the business solvent. Not being able to afford the few thousand dollars for the qualified equipment appraisal needed meant that the bankruptcy proceedings were disrupted and delayed.
If you are not certain how much an equipment appraisal might cost you, get together an equipment list (mentioned in this equipment appraisal post) and get a quote from a qualified equipment appraiser early in the game. Contact a local Accredited Senior Appraiser, specializing in Machinery and Equipment, who should be able to give you a rough idea of what your bankruptcy equipment appraisal will cost.
Don’t take any chances if you are starting to consider a bankruptcy for your business; get good legal advise as soon as you realize that bankruptcy might be an option for you and be sure to put away the cost of a good equipment appraisal.
Jack Young, ASA, CPA
NorCal Valuation
