Formula for calculating present value of a promissory note owed to debtor
Posted: Tue Sep 03, 2013 12:56 pm
Debtor has a promissory note with a face value of $100,000. The interest is
already incorporated into it. The $100,000 is to be paid over five years to
debtor. Of course it is uncertain whether the person will pay debtor on the
note. If debtor files chapter 13, I need to be able to value this asset.
Since it is uncertain and is to be paid over five years, is there a
formula to calculate the present value of this asset so I can exempt some
or all of it under the wild card?
Please direct me to the appropriate formula. Thank you.
Holly Roark
Certified Bankruptcy Specialist*
holly@roarklawoffices.com **primary email address**
www.roarklawoffices.com
Central District of California
Consumer Bankruptcy Attorney
1875 Century Park East, Suite 600
Los Angeles, CA 90067
T (310) 553-2600
F (310) 553-2601
*By State Bar of California Board of Legal Specialization
**For a quicker response, email me at holly@roarklawoffices.com.
I only use gmail for my listservs, and am likely to miss private emails
directed to my gmail account.**
Debtor has a promissory note with a face value of $100,000. The interest is already incorporated into it. The $100,000 is to be paid over five years to debtor. Of course it is uncertain whether the person will pay debtor on the note. If debtor files chapter 13, I needto be able to value this asset. Since it is uncertain and is to bepaid over five years, is there a formula to calculate the present value of this assetso I can exempt some or all of it under the wild card?
Please direct me to the appropriate formula. Thank you.--
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