What recovery rate do creditors usually get from debtors?
Each case is unique. In perhaps the majority of cases, there is virtually nothing left to pay unsecured claims after administrative expenses and secured creditors are paid. Furthermore, distributions, if there are any to be made, could take months or even years to materialize. A dollar today is worth much more than a dollar in a year’s time, particularly when the released cash can be used to re-invest in your business.
