How to value real estate in MA bankruptcy

Good question.  Hopefully you will contact a MA bankruptcy attorney about your decision to file bankruptcy.  When you do, if she believes bankruptcy is a good option for you, she may have a preferred method of estimating the value of your home.  It's a fairly important issue because if you place an unreasonably low value on your home you run the risk that the trustee will object to your valuation and, possibly, ask the court for permission to seize your home.  On the other hand, if your estimate is too high, that can impact your option to choose chapter 7 over chapter 13 bankruptcy (assuming that question is in play in your particular case).

To your specific question, you did not say what you think of the appraisal done for the refinance (whether it is too high or too low), but if you think it is accurate, you can certainly use that as a basis for your home value estimate.  However, if the appraisal is higher than what your house is actually worth in the current market, then you should consider paying for a formal appraisal or, at a minimum, finding another way to document your estimation of value.  Bankruptcy courts in Massachusetts will accept a properly documented 'drive by' appraisal prepared by a licensed real estate broker.  It is probably not a good idea to use a tax assessor's valuation, especially if it is out of date.  Similarly, at least one court in Massachusetts has expressed doubt about the use of a 'Zillow" estimate.  (See In re JORGE H. DAROSA, Case No. 10-44471-MSH, District of Massachusetts, Central Division.) Hope that helps.