Are There Specific Deadlines for Subchapter V Filings in Florida?

Subchapter V is intended to be a faster option for small businesses than filing Chapter 11. Still, there are important deadlines to be aware of.

Subchapter V is a cost-effective, streamlined option within Chapter 11 bankruptcy. It was created as part of the Small Business Reorganization Act (SBRA) and is meant for small businesses to reorganize their debts while still operating their business. With a faster process and less bureaucracy, Subchapter V is meant to give business owners a more flexible option while keeping their doors open.

Still, there are certain deadlines involved in Subchapter V, and it is important to know what these are to protect your case.

The 90-Day Deadline

The most important deadline in Subchapter V bankruptcy is the 90-day deadline. Borrowers are required to file a plan of reorganization within 90 days of filing the bankruptcy petition. This deadline is much shorter than in traditional Chapter 11 bankruptcy cases. It is meant to promote a faster, more efficient, and cost-effective bankruptcy process for small businesses.

Unlike in traditional Chapter 11 cases, only borrowers can file a reorganization plan in Subchapter V. Extensions to the deadline are possible, but they are rare. A court must find that an extension is necessary due to circumstances that the borrower cannot control. When borrowers do not file the plan before the deadline expires, it can result in a dismissal of their case, or they may have to convert to a Chapter 7 liquidation bankruptcy.

The Status Conference

Another important deadline is the status conference, which must take place within 60 days after the bankruptcy petition was first filed with the court. The status conference is meant to help monitor the progress of the case and facilitate a quick resolution. The main goal of the status conference is to ensure the borrower can efficiently propose a plan of reorganization.

The borrower, their attorney, and typically the Subchapter V trustee must attend the status conference. Creditors or their attorneys can also attend to remain informed and ensure their interests are protected. At least 14 days before the conference, borrowers must submit a written report outlining their efforts to date and future plans to achieve a reorganization plan acceptable to all.

Three to Five Year Timeline

The reorganization plan in Subchapter V allows borrowers to repay their debts over three to five years. This can lower payments for the borrower by stretching their payments across a longer period of time.

Call Our Bankruptcy Lawyer in Florida Today

Although there are not many deadlines in Subchapter V, the ones in place are very important to follow. At Brian K. McMahon, P.A., our Florida bankruptcy lawyer can guide you through the process, ensure all deadlines are met, and that no mistakes are made so you obtain the best possible outcome. Call us today at 561-658-1789 or fill out our online form to schedule a free consultation with our experienced attorney and to learn more about how we can help.