The Critical First 90 Days in Subchapter V: How to Stay on Track

Melissa A. Youngman
Oct 30
4 min read

By Winter Park Estate Plans & ReOrgs Admin

Florida Bankruptcy Attorney – Winter Park, FL

When a business files a case under Subchapter V of Chapter 11 of the Bankruptcy Code, the first 90 days are of critical importance.

Unlike a traditional Chapter 11 case, Subchapter V moves on a compressed bankruptcy timeline. Within three months, debtors must attend an Initial Debtor Interview (IDI) and Section 341 Meeting of Creditors with the Office of the U.S. Trustee, prepare and file all required status reports and monthly operating reports, attend the initial status conference and hearings on first day motions, negotiate and propose a viable plan, and cooperate with the Subchapter V Trustee, the Office of the U.S. Trustee, and participating creditors, all while keeping the business operating.

For Florida companies seeking reorganization, success during this early phase requires focus, communication, and careful planning.Hiring an experienced bankruptcy attorney can make a huge difference in your case.

1. The First 7 Days: File Complete and Accurate Schedules and Statements

Your case begins the moment the petition is filed and so does the countdown. The U.S. Trustee’s Office and Subchapter V Trustee immediately review your filing for completeness and accuracy.

Common filings at the beginning of a Subchapter V case include:

Petition, Schedules, and Statements of Financial Affairs
Cash Collateral Motion with Six Month Budget and Cash Flow Projections
Other First Day Motions such as Motions to Employ Counsel and CPA
Most Recent Tax Returns, Balance Sheet and Financial Statements

If you’re missing documentation, the court may issue a notice of deficiency, which can delay your first hearing. Thorough preparation and organization are the foundation of every successful Subchapter V case.

Pro Tip: Use our Chapter 11 or Subchapter V readiness checklist before filing. Gathering complete financials upfront prevents missed deadlines later.

2. The First 30 Days: Engage with the Subchapter V Trustee and Creditors

Within the first month, the Office of the U.S. Trustee will contact you to schedule the Initial Debtor Interview (IDI). This telehonic meeting with an analyst from the Office of the U.S. Trustee is utilized to ensures the debtor understands their duties and obligations while in Subchapter V, and to prepare for the Section 341 Meeting of Creditors. The Meeting of Creditors is a more formal telephonic meeting, which is digitally recorded. An attorney from the Office of the U.S. Trustee will place you under oath to testify to the events leading to the bankruptcy and the information disclosed in the petition and schedules. Creditors are invited to attend, but do not have to. If they chose to attend, they will be invited to ask questions once the U.S. Trustee's attorney has completed his or her questions.

During this stage, you’ll need to:

Provide updated bank statements to your attorney
Meet and confer with the Subchapter V trustee to introduce him or her to your case
Close all pre-petition bank accounts and open new Debtor in Possession Bank accounts at a bank approved by the Office of the U.S. Trustee
Stay current on all post-petition taxes
Maintain insurance
Explain any significant changes in business operations
Begin to engage in communication with creditors, perhaps with the help of the Subchapter V Trustee
Engage in your plan preparation strategy as outlined by your attorney

The Subchapter V Trustee is not your adversary. They’re a neutral party whose goal is to help the case progress toward a fair and confirmable plan. Maintaining transparency and cooperation is key. They can often be the key to accomplishing a consensual plan of reorganization.

Florida reorganization attorneys often emphasize communication between debtors, trustees, and creditors early in the case as a key indicator of future success in the case. Building trust from day one can lead to smoother negotiations later.

3. The First 60 Days: Begin Drafting the Plan

By day 60, your legal team should have enough data to begin drafting your reorganization plan.

Subchapter V requires the debtor to file a plan within 90 days of the petition date. No extensions are granted unless the delay is due to circumstances beyond your control.

A strong plan should include:

Brief history of the Debtor's business and events leading to bankruptcy
Proposed repayment plan for secured and unsecured debts
Liquidation analysis showing that creditors will receive more than they would under a theoretical Chapter 7 liquidation
Updated projections based on post-petition business performance showing average monthly disposable income available to pay creditors
Narrative explanation of how the business will fund the plan and that such plan is feasible
Proper and non-discriminatory classification of claims

For many Florida small businesses, this step involves close collaboration between your bankruptcy attorney, the Subchapter V Trustee, and creditor's counsel, to ensure all statutory plan requirements are met.

4. The First 90 Days: File and Finalize Your Plan

By the 90-day deadline, your plan of reorganization must be filed with the bankruptcy court. Missing this deadline without good cause could result in the dismissal or conversion of your case.

After filing the initial plan, your attorney works with creditors to resolve objections, sometimes with the help of the Subchapter V Trustee, and prepares for the confirmation hearing. The streamlined nature of Subchapter V often allows cases to move from filing to plan confirmation in six to eight months, far faster than most Chapter 11 cases.

Staying organized and proactive during these first 90 days makes the rest of your bankruptcy timeline much easier to manage.

The Bottom Line

Subchapter V was designed to help small businesses reorganize efficiently. But, efficiency only works when you and your team work procactively and diligently to meet all required case deadlines.

By maintaining transparency with the Court, the Subchapter V Trustee, and creditors, following each step of the Subchapter V reorganization process with the guidance of experienced bankruptcy counsel, and tracking your progress against a clear bankruptcy timeline, your business can reorganize successfully with confidence.

At Winter Park Estate Plans & ReOrgs, we guide Florida business owners through every stage of Subchapter V, from petition filing to plan confirmation, with precision and care.