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Liquidation Analysis

Designed to automate one of the most complex parts of a Business Chapter 11 filing, this tool calculates the estimated liquidation costs directly from your existing case data, eliminating the need for external spreadsheets. Here's how to use it:

Written by Sara Taylor

Prepare Your Data

The Liquidation Analysis will pull values directly from your existing case data, so make sure the following sections are completed first:

  • Assets: Add all items to the Personal Property section as usual. (See Personal Property Line Mapping for details on easy Schedule A/B and SOFA placement).

  • Link Assets to Claims: After entering your claims in the Secured Claims section, ensure each secured claim is linked to its corresponding asset.

Review your Liquidation Analysis

Once your assets and claims are linked and saved, they will automatically appear in the Liquidation Analysis, where you will see three distinct sections:

  1. Gross Liquidation Value of Assets:

    In this section, you'll be able to see how we calculate the Estimated Liquidation Value from the Book Value of your Personal Property entries. NextChapter provides an editable Liquidation Percentage field for each asset that you can adjust as you see fit.


    Within this section we have the following tools to help customize your worksheet:
    ​
    ​Creating & Organizing Groups

    • Add + New Group button

    • Users can create unlimited groups

    • Assets can be drag-and-dropped into groups

    • Each group has an editable title

      • Pencil icon shown next to title

    • Each group has a subtotal bar at the bottom

      • Subtotal updates as assets are added/removed

      • Shows total Book Value

      • Shows Estimated Liquidation Value

    Deleting Groups

    • Users can delete any created group

    • When a group with assets is deleted, assets move to ungrouped (bottom of list)

    Group Notes

    • Each group displays an info icon

    • Clicking opens a modal to add/edit a Group Note and save it

    • Saved note appears as tooltip on hover

    • Clicking icon again allows editing the existing note

  2. Estimated Costs of Liquidation: Enter the any anticipated business or administrative expenses you wish to deduct from the gross proceeds.

  3. Net Proceeds Available for Distribution: This section provides a clear breakdown of:

  4. Total Gross Proceeds: The combined liquidation value of all assets.

  5. Total Deductions: The sum of all estimated costs and exemptions.

  6. Net Proceeds: The final amount available to be distributed to creditors.

  7. Download & Save Options: The download feature allows you to export data as a CSV file, download documents as PDFs, or save files directly to Client Document Storage for easy access and organization.

We are already working on Version 2 of this tool and would love your feedback—please let us know if there are any additional features or adjustments you’d like to see! Send us a chat in the app or reach out at hello@nextchapterbk.com to share your feedback.

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