Chapter 11 Information

Chapter 11 Quarterly Fees

Under 28 U.S.C. § 1930(a)(6), a quarterly fee shall be paid to the United States Trustee System Fund at Treasury in each case under chapter 11 (except small business cases under subchapter V of chapter 11) for each calendar quarter, or portion thereof, between the date a bankruptcy petition is filed and the date the court enters a final decree closing the case, dismisses the case, or converts the case to another chapter in bankruptcy.

For more information, refer to Chapter 11 Quarterly Fees.

Chapter 11 Operating Reports

Debtors-in-possession and chapter 11 trustees must account for the receipt, administration, and disposition of all property; provide information concerning the estate and the estate’s administration as parties in interest request; and file periodic reports and summaries of a debtor’s business, including a statement of receipts and disbursements, and such other information as the United States Trustee or the United States Bankruptcy Court requires. 11 U.S.C. §§ 1106(a)(1), 1107(a); Fed. R. Bankr. P. 2015(a)(2), (a)(3). The monthly periodic report filed during the case before the confirmation of a plan of reorganization is generally known as the monthly operating report (MOR). The quarterly periodic report filed after the confirmation of a plan of reorganization and before the case is closed is generally known as the post-confirmation report (PCR).

On December 21, 2020, the United States Trustee Program issued a final rule in accordance with 28 U.S.C. § 589b establishing a uniform MOR and PCR, both of which will be effective 180 days after publication, June 21, 2021. This rule applies to the vast majority of chapter 11 debtors except those who are small businesses or who, in accordance with the CARES Act, elect relief under subchapter V of chapter 11.

For more information, refer to Chapter 11 Operating Reports.

Subchapter V Small Business Reorganizations

The Small Business Reorganization Act of 2019 (SBRA) was enacted on August 23, 2019, with an effective date of February 19, 2020. Upon enactment, small business debtors with less than about $2.75 million in debts could voluntarily elect to proceed under a new subchapter V of chapter 11 of the Bankruptcy Code if they met certain eligibility criteria. Pursuant to the CARES Act, the SBRA debt limit was temporarily increased to $7.5 million for bankruptcy cases filed on or after March 27, 2020, and this temporary increase was further extended with the passage of the Bankruptcy Threshold Adjustment and Technical Corrections Act (BTATCA) in 2022. Currently, the temporary $7.5 million debt limit applies for all small business debtor cases filed on or after March 27, 2022, through June 21, 2024, at which time the debt limit will revert back unless Congress takes action. Subchapter V imposes shorter deadlines for filing reorganization plans, allows for greater flexibility in negotiating restructuring plans with creditors, and does not require the payment of United States Trustee quarterly fees. Unlike in other chapter 11 cases, the United States Trustee Program appoints a trustee in each subchapter V case. The trustee works with the small business debtor and the creditors to facilitate the development of a consensual plan of reorganization, which may include evaluating the viability of the debtor’s business and investigating the debtor’s financial condition and conduct if directed by the court.

The USTP publishes a summary of statistical results from subchapter V cases.