4 Collier on Bankruptcy P 502.04

Summary

• [1] Overview of Section 502(c)

  Section 502(c)(1) provides a mechanism for estimating the amount of a contingent or unliquidated claim for purpose of its allowance when the fixing or liquidation of the claim would unduly delay the administration of the case. In addition, section 502(c)(2) provides for estimation of any right to payment arising from a right to an equitable remedy for breach of performance. The authority given by section 502(c) for estimation of the kinds of claims described in paragraphs (1) and (2) for purpose of allowance is a salutary provision designed to promote the equitable administration of the estate from the standpoint of both the debtor and the creditor. The essence of section 502(c) is that “all claims against the debtor be converted into dollar amounts.”1

• [2] Requirement of Estimation

  Section 502(c)(1) requires estimation of a ...