USPAP-COMPLIANT · BANKRUPTCY
Inventory Appraisal for Bankruptcy
Inventory appraisal services for bankruptcy covering liquidation value, net orderly liquidation value, and Chapter 7 and Chapter 11 proceedings, prepared in accordance with USPAP. Accountable Inventory Appraisers delivers liquidation-ready valuations on retail, wholesale, and manufacturing inventory held by bankruptcy estates nationwide.
- Liquidation value, net orderly liquidation value, and forced liquidation value opinions
- Prepared in accordance with USPAP for filing with the bankruptcy court
- Turnaround and a fixed fee scoped and confirmed before we start, with expedited service available
WHY IT MATTERS
Accountable Inventory Appraisers establishes the liquidation value that bankruptcy estates are built on
When a business files for bankruptcy, the value of its inventory shapes nearly every decision that follows, from how much a secured creditor can claim to whether a reorganization plan is feasible. Courts, trustees, and creditors need an independent appraisal, not the debtor's book value or retail price, to know what the inventory would actually recover.
We prepare liquidation value and net orderly liquidation value opinions in accordance with USPAP, using recognized methodology and current market evidence. In a Chapter 7 case, the question is what the inventory brings in a sale conducted under time pressure. In a Chapter 11 reorganization, the debtor in possession and its creditors need a defensible value to support secured-claim treatment under Section 506, adequate protection, debtor-in-possession financing, and Section 363 asset sales.
A credible, standards-compliant valuation gives the debtor, the trustee, secured creditors, and the court a common figure to work from instead of a contested estimate. If the inventory is also being pledged to support new financing during the case, our inventory appraisal for asset-based lending covers the net orderly liquidation value reporting debtor-in-possession lenders require.
Value Standards
Four value standards shape how inventory is treated in a bankruptcy case
FLV
A compressed, time-pressured sale, such as an auction, defines forced liquidation value. It is often the reference point in a Chapter 7 case.
OLV
Orderly liquidation value estimates what the inventory would bring if sold over a reasonable marketing period, with adequate time to reach buyers.
NOLV
Net orderly liquidation value takes orderly liquidation value and subtracts the costs of selling. In bankruptcy, it is the figure most often used to value inventory collateral and support secured-claim treatment.
FMV
Fair market value reflects what a willing buyer would pay a willing seller when neither side is under pressure to act. It provides a going-concern reference point in a reorganization.
Types of Inventory
Accountable Inventory Appraisers appraises all types of inventory held in bankruptcy estates, including wholesale merchandise, industrial stock, and specialty goods
Bankruptcy estates hold inventory at every stage of production and every level of marketability, and we value it accordingly.
Retail & Wholesale Merchandise
- Apparel and accessories
- Footwear
- Housewares and small appliances
- Consumer electronics
Manufacturing & Industrial Stock
- Raw materials
- Work-in-process goods
- Finished industrial products
- Machine parts and components
Distribution & Warehouse Inventory
- Bulk commodities
- Palletized stock
- Building and construction materials
- Packaging supplies
Specialty & Hard-to-Move Goods
- Seasonal and discontinued merchandise
- Perishable and dated stock
- Pharmaceuticals and medical supplies
- Overstock and closeout inventory
Our Process
How we deliver a liquidation value the court, trustee, and creditors can rely on
- 01
Tell Us About the Case
Share the bankruptcy chapter, filing deadline, and the value conclusions the court or creditors require.
- 02
Schedule & Records Review
We review the bankruptcy schedules, perpetual inventory records, and cost data to scope the engagement.
- 03
Physical Count or Desktop Review
Depending on the assignment, we complete a physical inventory observation or a desktop review of your records.
- 04
Liquidation Value Analysis
Our appraiser applies liquidation value and net orderly liquidation value methodology using current market evidence.
- 05
Report Filed With the Court
We deliver a USPAP-compliant report for filing with the court and stay available to answer questions from counsel, the trustee, or creditors.
Credentials & Standards
Our appraisers hold professional credentials behind every bankruptcy liquidation report
Our bankruptcy appraisers hold credentials with organizations such as the ISA, ASA, CAGA, and AAA, and every report we prepare follows USPAP.
International Society of Appraisers
American Society of Appraisers
Certified Appraisers Guild of America
Appraisers Association of America
Bankruptcy FAQ
What debtors, trustees, and creditors ask about inventory appraisals in bankruptcy
Why does the inventory in a bankruptcy need to be appraised?
Inventory is often one of the largest assets in a bankruptcy estate, and its value determines how much a secured creditor can claim, what a debtor-in-possession can borrow against, and whether a reorganization plan is feasible. An independent, USPAP-compliant appraisal gives the court, the trustee, and creditors a defensible figure to work from instead of the debtor's book value or retail price.
What value standard is used to appraise inventory in bankruptcy?
It depends on the context. Forced liquidation value and net orderly liquidation value are common in a Chapter 7 liquidation or when valuing collateral, because they reflect what the inventory would actually recover in a sale. Fair market value provides a going-concern reference point in a Chapter 11 reorganization. We confirm the appropriate standard with you and your counsel before we begin.
Who orders an inventory appraisal in a bankruptcy case?
We are engaged by debtors and debtors-in-possession, bankruptcy trustees, secured creditors, and the attorneys and advisors who represent them. Whoever retains us, we prepare an independent opinion of value; our role is to deliver a defensible, USPAP-compliant conclusion the court can rely on, not to advocate for one side.
How does an inventory appraisal support Chapter 7 liquidation versus Chapter 11 reorganization?
In a Chapter 7 case, the trustee needs to know what the inventory will bring in a sale conducted under time pressure, so forced and net orderly liquidation values are central. In a Chapter 11 case, the debtor and creditors need a value to support secured-claim treatment under Section 506, adequate protection, and plan feasibility. We tailor the value conclusions to the chapter and the purpose.
How does the appraisal support a Section 363 sale or a secured creditor's claim?
For a Section 363 sale of inventory, an independent valuation supports the reasonableness of the proposed sale price for the court and interested parties. For secured-claim valuation under Section 506, the appraisal establishes the value of the collateral securing a creditor's claim. In both cases we document methodology and market evidence so the conclusion holds up under review.
Get Started
Request an Inventory Appraisal for Bankruptcy
Tell us about the inventory, the chapter you're filing under, and your court deadline. We'll confirm scope, timing, and a fixed fee before we begin.