Bankruptcy Loss Calculator

Tenant bankruptcy crystalizes loss. This calculator sizes expected recovery.

Pre-petition balance

Claim class 1-3

1 secured, 2 priority, 3 unsecured

Recovery rate %

Attorney/admin cost

Net expected loss

$50,660

Gross recovery

$3,840

Net recovery %

0.00%

How the math works

Gross recovery = balance × rate × class multiplier (secured 2.5x, priority 1.0x, unsecured 0.5x). Net = gross − admin.

File the proof of claim the week notice arrives. Bankruptcy claim deadlines are strict and do not care about operational delays; a missed bar date zeros recovery. The cost of filing is trivial compared to the downside of missing the calendar.

How to Use

Enter pre-petition balance owed.
Enter claim class (unsecured default).
Enter expected recovery rate %.
Enter attorney/admin cost.
Read net expected loss.

Frequently Asked Questions

Claim hierarchy?

Administrative (post-petition rent): paid current or lease rejected. Priority (last 180 days pre-petition cap): 1-5% recovery typical. Unsecured (older debt): 0-5% typical. Commercial reorgs (Ch 11) higher recovery than consumer (Ch 7).

Lease rejection?

In Ch 11, tenant can assume or reject lease. Rejection = breach, landlord claim = future rent capped (BK Code 502(b)(6)): 1 year or 15% of remaining term (whichever greater), max 3 years. Landlord claim often 20-30% of true loss.

Monitoring?

Subscribe to PACER bankruptcy alerts on large commercial tenants. Check monthly. A 30-day delay missing the claim filing deadline = zero recovery. Calendar deadlines religiously.

How often should I rerun this?

Rerun this calculator whenever inputs change materially — new rent roll data, rate moves, loan balance updates, or quarterly operating data. For active deals, monthly refresh is typical. For stabilized assets under monitoring, quarterly is fine. Treat the output as a decision tool, not a one-time answer — market conditions evolve and so should your analysis.