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West Virginia Homestead Exemption Act contains a $25,000 value
limitation, based on equity ownership net of liens, determined by a fair
market appraisal. For purposes of homestead appraisal in bankruptcy
proceedings, the court maintains ultimate authority to approve the
method used for appraisals. In practice, the recommendation of the
trustee carries significant power of persuasion.
Creditors who request appraisals based on highest potential for
professional sellers, and debtors who request an appraisal based on the
lowest liquidation possibility in a forced sale, are both incorrect. The
trustee, who must cover costs of forfeiture, evaluation, accounting,
reporting and distribution costs, considers auction values in current
local markets. Although not expressly part of the West Virginia
homestead exemption law, practical limitations on the disbursement of
excess equity create leeway in the process of appraising real estate.
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