Subchapter V Bankruptcy Rules Permanently Amended
The amended Rules can be found in House Document 117-108, linked here. The key amendments affecting Subchapter V cases are as follows:
- Rule 1007(b)(5)—individual Subchapter V debtor need not file monthly income statements.
- Rule 1007(h)—Subchapter V debtor need not file supplemental schedules after acquiring certain property postpetition if the property was acquired (i) after the debtor consensually confirmed a plan under section 1191(a) of the Bankruptcy Code or (ii) after the debtor received a discharge after confirming a cram-down plan under section 1191(b) of the Bankruptcy Code.
- Rule 1020(a)—Subchapter V debtor must state in its voluntary petition both (1) whether it is a small business debtor, and (2) whether the debtor elects to have Subchapter V apply.
- Rule 1020(c)—this subsection, which previously concerned procedures for creditors’ committees in small business cases, has been stricken entirely.
- Rule 1020(d)—objections to Subchapter V designation must be served on creditors included in the list filed under Rule 1007(d).
- Rule 2009—creditors may not elect joint or separate trustees in a jointly administered Subchapter V case.
- Rule 2012(a)—the Subchapter V trustee will automatically substitute the debtor-in-possession if the Subchapter V debtor is removed as debtor-in-possession.
- Rule 2015(a)—Subchapter V debtor is not required to provide the US Trustee with a complete inventory of property, or quarterly reports of fees and disbursements made pursuant to 28 USC § 1930(a)(6).
- (New Rule) 2015(b)—the court may require that Subchapter V debtor provide the US Trustee with a complete inventory of property. The trustee shall perform the duties under Rule 2015(a) if the Subchapter V debtor is removed as debtor-in-possession.
- Rule 3010(b)—Subchapter V debtor does not need to make payments to creditors in an amount less than $15 unless authorized by local rule or court order.
- Rule 3011—Subchapter V debtor must file with the court a list of the known names, addresses, and amounts owed to recipients of any unclaimed funds to be paid to the court pursuant to section 347(a) of the Bankruptcy Code.
- Rule 3014—classes of creditors electing to have their claims treated as fully secured pursuant to section 1111(b)(2) of the Bankruptcy Code must make the election by a date set by the court.
- Rules 3016(d)—Subchapter V debtor may submit a disclosure statement and plan that conform substantially to the appropriate official forms provided by the court.
- Rule 3017.1—Subchapter V debtor does not need to file a disclosure statement unless the court orders that section 1125 of the Bankruptcy Code applies.
- (New Rule) 3017.2—the court fixes (a) the deadline for holders of claims and interests to accept or reject the plan; (b) the record date for equity security holder and creditor eligibility to accept or reject the plan; (c) the confirmation hearing; and (d) the deadline for notice and transmission of the plan and voting procedures to holders of claims and interests.
- (New Rule) 3019(c)—Subchapter V debtor may modify its plan post-confirmation pursuant to Rules 3019(b) and 9019.
Subchapter V cases had previously been governed by interim Federal Rules and local rules adopted in many jurisdictions. The continued effectiveness of such local rules will vary from court to court, and may be further amended in light of the finalized Federal Rules.
- Related Practices