Chapter 11 Lease Rejection Calculator

BK Code caps lease rejection claims. This calculator sizes the capped claim.

Annual base rent

Remaining years

Discount rate %

Past due

Capped claim

$347,250

Raw future rent

$1,483,815

Cap months

1 yr 1 mo

How the math works

Cap = max(1 year, 15% of remaining term) up to 3 years × annual rent. Total claim = cap + past due.

Cap math overstates true recovery expectation. Even capped claims run 5-20 cents on the dollar at unsecured class treatment — model real recovery as an additional 80-90% haircut after applying the 502(b)(6) limit.

How to Use

Enter annual base rent.
Enter remaining lease term years.
Enter discount rate for present value.
Enter past due rent.
Read capped claim value.

Frequently Asked Questions

502(b)(6) cap?

Rejection claim capped at rent reserved by lease for: 1 year OR 15% of remaining term (whichever greater), max 3 years. Plus any past-due amounts. Cap applies to the future-rent portion only.

Mitigation?

Landlord must mitigate by re-letting. Mitigation reduces claim. Document re-leasing efforts carefully. Court will reduce claim by actual mitigation rent received from new tenant during rejected term.

Recovery?

Even capped claim is unsecured — recovery often 5-20%. Plan confirmation may include stock or contingent payment (not cash). Negotiate landlord treatment in plan ballot if meaningful claim size.