Subchapter V Bankruptcy Attorney

Subchapter V of Chapter 11 is the small business reorganization track created by the Small Business Reorganization Act of 2019 (SBRA). It gives qualifying small businesses and individual business debtors a faster, less expensive, and more flexible path to reorganize under the Bankruptcy Code than a traditional Chapter 11 case — without losing the reorganization tools that make Chapter 11 worth using in the first place.

Michael H. Moody Law handles Subchapter V cases for Florida businesses from the firm’s Tallahassee office and works with local co-counsel on Chapter 11 and Subchapter V matters in Delaware, New York, New Jersey, Pennsylvania, and Tennessee. Michael H. Moody spent four years at Berger Singerman focused on bankruptcy and business reorganization and seven years at Greenberg Traurig handling complex commercial litigation and cross-border collections before founding the firm. That background is unusual for a small-firm Subchapter V practice and shows up in every plan the firm drafts.

Who Qualifies for Subchapter V?

To be eligible for Subchapter V, a debtor must be engaged in commercial or business activity and have aggregate noncontingent, liquidated secured and unsecured debts of $3,424,000 or less as of the petition date, not counting debts owed to affiliates or insiders. This figure reflects the current threshold under 11 U.S.C. § 1182, as adjusted by 11 U.S.C. § 104(a) effective April 1, 2025.

The debt cap was temporarily raised to $7.5 million under the CARES Act and the SAFE Act, but that temporary increase expired on June 21, 2024, and the threshold returned to the inflation-adjusted statutory baseline. Proposed federal legislation would restore the higher cap, but unless and until Congress acts, the $3,424,000 figure controls. Eligibility must be confirmed as of the date the petition is filed — aggressive timing and debt structuring can make the difference between qualifying and not.

What Makes Subchapter V Different From Traditional Chapter 11?

• No creditors committee absent court order, which dramatically reduces professional fees
• A standing Subchapter V trustee facilitates plan negotiations and monitors the case, but the debtor remains in possession
• Plan must be filed within 90 days of the petition date, with extensions only for circumstances the debtor could not have reasonably avoided
• Only the debtor can propose a plan — no competing plans from creditors
• No absolute priority rule — equity owners can retain their interests without paying unsecured creditors in full, provided the plan is fair and equitable under § 1191(c)
• Nonconsensual confirmation (cramdown) is available without any impaired accepting class, so long as the plan commits projected disposable income for three to five years
• No disclosure statement required unless the court orders one
• Discharge upon completion of plan payments, not at confirmation, in cramdown cases

Put together, these differences mean a Subchapter V case typically costs a fraction of a traditional Chapter 11 and moves through the court on a timeline a small business can actually survive.

Who Uses Subchapter V?

Subchapter V is the right tool for a wide range of small and mid-sized business situations, including:

• Professional practices (medical, dental, legal, accounting) carrying large equipment loans or tax debt
• Construction, contracting, and trades businesses squeezed by receivables and progress-billing cycles
• Restaurants, hospitality, and retail operations with burdensome leases or supplier debt
• Family-owned operating companies that need to restructure shareholder debt or resolve inter-company claims
• Real estate ventures holding single-asset or multi-property portfolios within the debt cap
• Businesses with large personal guarantees by owners who also need individual relief
• Technology and service companies with concentrated vendor obligations

What a Subchapter V Case Actually Looks Like

A well-run Subchapter V case is not a reactive filing — it is a planned event. Before the petition, the firm works with the client to model projected disposable income, value secured claims, analyze executory contracts and leases, evaluate preference and fraudulent transfer exposure, and draft a plan framework that can realistically be filed within the statutory 90-day window. Once the case is filed, the firm manages the relationship with the Subchapter V trustee, negotiates with secured and unsecured creditors, handles any contested matters, and drives the case to confirmation.

For business owners whose personal assets are also at risk, the firm integrates the Subchapter V strategy with personal asset protection planning and, where appropriate, a coordinated personal Chapter 7 or Chapter 13 filing. Cases involving real estate, equipment, and intellectual property frequently benefit from parallel work on valuation, insider claim treatment, and plan tax consequences.

Direct Attorney Access

Every Subchapter V engagement at Michael H. Moody Law is handled directly by Michael H. Moody. No associate hand-offs, no staffing pyramids, no BigLaw overhead. Call (850) 739-6970 or use the contact form to schedule a confidential consultation in Tallahassee or by video conference anywhere in Florida. For multi-jurisdictional Chapter 11 and Subchapter V matters in Delaware, New York, New Jersey, Pennsylvania, or Tennessee, the firm coordinates with experienced local co-counsel in each district.

Related Practice Areas

If your aggregate debts exceed $3,424,000, you will need a traditional Chapter 11 reorganization. Closely-held businesses whose best path is liquidation should consider Chapter 7 or the broader business bankruptcies practice. Owners frequently integrate a Subchapter V filing with Florida asset protection planning and updated wills and trusts.