Bankruptcy Interest Calculation

Calculate Bankruptcy Claim Interest in Minutes, Not Hours

8 minutes with Para

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Get started with Para

Para is an AI colleague for legal teams. Send it this work by email, Teams or Slack, and it hands back the finished document.

8 minutes with Para

What you'll need

Loan Agreement or Promissory Note
Claim Details Summary

Plans from $20 a month, with usage included.

Workflow

Overview

CaseMark's Bankruptcy Interest Calculation skill automates the complex process of computing pre-petition interest for bankruptcy proofs of claim. It analyzes rate sources, applies the correct day-count convention, and generates a filing-ready interest worksheet with defensible formulas and citations. The tool also evaluates post-petition interest eligibility under § 506(b) and verifies fee inclusion standards.

Calculating interest for bankruptcy proofs of claim is tedious and error-prone. Attorneys and paralegals must manually identify the correct rate source, determine the proper day-count convention, compute per diem amounts, count accrual days, and apply different post-petition rules depending on claim type—all while producing documentation defensible enough to survive objections.

CaseMark automates the entire interest calculation workflow by analyzing your loan documents, applying the correct rate hierarchy and day-count convention, and computing precise pre-petition and post-petition interest amounts. The result is a filing-ready worksheet with transparent formulas and proper citations that you can attach directly to your proof of claim.

How to hand this to Para

1. Send Para the files
Email them, drop them in a Teams or Slack message, or upload them.
2. Para runs the Bankruptcy Interest Calculation skill
It works from your files and checks its citations against the record.
3. The finished document comes back
Para returns it where you asked, usually as a DOCX, and offers the next step.

Example request · email, Teams or Slack

Para, run the Bankruptcy Interest Calculation skill for the Garcia matter. I've attached the Loan Agreement or Promissory Note and Claim Details Summary. Send the finished draft back here as a DOCX.

What Para does

1. Upload your loan agreement, claim details, and supporting documents
2. AI identifies the applicable interest rate, day-count convention, and accrual period
3. Review the calculated pre-petition interest, post-petition analysis, and total claim amount
4. Export the filing-ready interest worksheet for attachment to your proof of claim (DOCX, PDF)

What you get

Interest Rate Determination & Source Citation
Day-Count Convention Analysis
Per Diem & Pre-Petition Interest Calculation
Post-Petition Interest Assessment
Total Claim Amount Summary
Filing-Ready Interest Worksheet

What it handles

Automatic rate source hierarchy analysis (contract, judgment, statutory, federal)
Day-count convention detection and per diem calculation
Pre-petition interest computation with defensible formulas
Post-petition interest analysis under 11 U.S.C. § 506(b)
Filing-ready interest worksheet for proof of claim attachment
Fee and authorized charge inclusion verification

Required documents

Loan Agreement or Promissory Note
The underlying contract governing the debt, including interest rate provisions and fee authorization terms
.pdf, .docx
Claim Details Summary
Principal balance, annual interest rate, last payment date, petition date, and any prior judgment information
.pdf, .docx, .xlsx

Supporting documents

Payment History or Account Statement
Ledger or statement showing payment history and outstanding balance as of the last payment date
.pdf, .docx, .xlsx
Pre-Petition Judgment
Any judgment entered prior to the bankruptcy filing that may establish the applicable interest rate
.pdf, .docx
Collateral Valuation
Appraisal or valuation of collateral securing the claim, used to assess equity cushion for § 506(b) analysis
.pdf, .docx

Why teams use it

Eliminate manual per diem calculations and reduce arithmetic errors in claim amounts

Ensure proper rate source hierarchy compliance with automatic citation generation

Produce court-ready interest worksheets that withstand trustee and debtor scrutiny

Accelerate proof of claim preparation across high-volume bankruptcy portfolios

Questions

What interest rate sources does the tool analyze?

CaseMark follows the standard priority hierarchy: contract rate, judgment rate, state statutory rate, and federal rate under 28 U.S.C. § 1961. It identifies the highest-priority applicable rate and provides the proper citation for your proof of claim.

Does it handle different day-count conventions?

Yes. CaseMark recognizes Actual/365, Actual/360, and 30/360 conventions. It follows the convention specified in your contract and defaults to Actual/365 when the agreement is silent, consistent with standard bankruptcy practice.

Can it calculate post-petition interest for secured claims?

Absolutely. CaseMark analyzes whether a secured claim qualifies for post-petition interest under 11 U.S.C. § 506(b), evaluating the equity cushion to determine the allowable amount of post-petition interest for oversecured creditors.

Is the output suitable for filing with the bankruptcy court?

CaseMark generates a defensible interest worksheet designed for attachment to a proof of claim. It includes rate sourcing, formula documentation, and calculation breakdowns that meet court expectations for transparency and accuracy.

What types of bankruptcy claims does this support?

CaseMark handles interest calculations for secured, unsecured, and priority claims. It applies the correct post-petition interest rules for each claim type, including the solvent-debtor exception for unsecured claims.

How does CaseMark handle fees and authorized charges?

CaseMark reviews your underlying agreement to identify contractually authorized fees and charges that may be included in the total claim amount, ensuring your proof of claim captures all allowable components.