How Can I Calculate What a Creditor's Pro-Rata Portion Is?

by Tiesha Whatley ; Updated July 27, 2017

If you have filed bankruptcy, your creditors want to recover as much of the money owed to them as possible. Creditors recognize that the debtor is insolvent, so they agree to take a pro rata share. The debtors’ available funds are put together and divided proportionately among all creditors. A particular creditor’s portion is calculated according to that creditor’s percentage of the debtor’s total debt. The pro rata payment can be a lump sum, paid once from leftover funds after the bankruptcy, or it can be made in monthly payments from the available funds left over each month after your main expenses.

Lump Sum

Step 1

Write down the amounts owed to each creditor and add them up. For example, assume you have four creditors. Creditor A is owed $1,500, Creditor B is owed $1,000, Creditor C is owed $2,000 and Creditor D is owed $500. The total amount owed to creditors is $5,000.

Step 2

Write down the amount of your assessment -- the amount determined by the bankruptcy court that you have available for creditors. In the example, assume your assessment is $2,300.

Step 3

Divide the amount owed to each creditor by the total amount owed to all creditors. For Creditor A, $1,500 divided by $5,000 equals 0.3. For Creditor B, $1,000 divided by $5,000 equals 0.2. For Creditor C, $2,000 divided by $5,000 equals 0.4. For Creditor D, $500 divided by $5,000 equals 0.1.

Step 4

Multiply each per-creditor decimal amount by the assessment amount. In the example, for Creditor A, 0.3 multiplied by $2,300 is $690. For Creditor B, 0.2 multiplied by $2,300 is $460. For Creditor C, 0.4 multiplied by $2,300 is $920. For Creditor D, 0.1 multiplied by $2,300 is $230. These products are the respective pro rata amounts paid to each of the creditors.

Monthly Payments

Step 1

Calculate the amount owed to each creditor. In the example, the total amount owed to four creditors is $5,000.

Step 2

Calculate the total amount of money you have to pay creditors each month. This is a budgeted amount based on how much money you make. In the example, assume you have $30 each month to pay creditors.

Step 3

Multiply the amount owed to a creditor by the amount you have available each month to pay debts. In the example, for Creditor A, $1,500 multiplied by $30 equals $45,000. For Creditor B, $1,000 multiplied by $30 equal $30,000. For Creditor C, $2,000 multiplied by $30 equals $60,000. For Creditor D, $500 multiplied by $30 equals $15,000. These amounts are calculated as a step toward determining each creditor’s portion; they do not represent the amounts that will actually be paid to the creditors.

Step 4

Divide the calculated amount for each creditor by the total amount owed to creditors. In the example, for Creditor A, divide $45,000 by $5000 to get $9; the monthly pro rata payment for Creditor A is $9. Do this calculation for each creditor to determine the monthly pro rata payments. In the example, Creditor B’s monthly payment is $6, Creditor C’s payment is $12 and Creditor D’s payment is $3.

About the Author

Tiesha Whatley has been writing for over 10 years. She has been published in "Marie Claire," "Ebony" and "Modern Bride" magazines. She holds a Bachelor of Science in English from the University of Alabama at Birmingham and has been working in the wedding planning industry for over 13 years.

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