Chapter 11 Subchapter V Bankruptcy in Maryland

If you are a small business owner in Maryland facing financial difficulties, Chapter 11 Subchapter V bankruptcy can provide an effective way to restructure your debts, keep your business running, and avoid liquidation.

At Bankruptcy Near Me, we guide Maryland businesses through every step of the process — from eligibility and plan formulation to confirmation and discharge. We also offer low-bono (reduced-fee) representation for eligible clients.

What is Chapter 11 Subchapter V Bankruptcy?

Subchapter V is a specialized branch of Chapter 11 created under the Small Business Reorganization Act of 2019. It is designed to make bankruptcy more affordable, faster, and less complex for small businesses.

Key features include:

  • Streamlined procedures compared to traditional Chapter 11

  • Lower administrative costs and fewer formalities

  • Ability to retain ownership of the business while restructuring debts

  • A trustee-supervised process to assist in plan negotiation and confirmation

  • Discharge of pre- and post-petition debt obligations upon plan completion

Who Qualifies for Subchapter V in Maryland?

To qualify, your business must meet the following criteria:

  • Be a small business debtor (including corporations, LLCs, partnerships, or sole proprietorships)

  • Have aggregate debts of $7.5 million or less (excluding debts owed to insiders)

  • Operate primarily within the United States and in Maryland for filing purposes

  • Be engaged in a trade or business with regular operations

Individuals owning businesses may also qualify if their business meets the small business debt threshold.

The Chapter 11 Subchapter V Process

  1. Filing the Petition: Submit the Subchapter V petition to the U.S. Bankruptcy Court for the District of Maryland.

  2. Automatic Stay: Stops collection actions, litigation, and foreclosures.

  3. Appointment of Subchapter V Trustee: The trustee works with the debtor to propose a feasible plan.

  4. Debtor-in-Possession Role: You retain control of day-to-day business operations while restructuring debt.

  5. Plan of Reorganization: Draft a plan detailing how debts will be repaid over 3–5 years.

  6. Confirmation Hearing: The court reviews and confirms your plan; in Subchapter V, creditor votes may not be required.

  7. Implementation: Make payments according to the approved plan.

  8. Discharge: Upon completion, eligible debts are discharged, freeing the business from prior obligations.

Subchapter V cases are typically faster and less expensive than traditional Chapter 11 cases, often concluding in 3–5 years.

Maryland Judges & Trustees

Bankruptcy Judges — District of Maryland

Subchapter V cases are handled by bankruptcy judges in the District of Maryland:

  • Hon. Nancy V. Alquist

  • Hon. Thomas J. Catliota

  • Hon. Maria Ellena Chavez-Ruark

  • Hon. Michelle M. Harner

  • Hon. David E. Rice (Chief Judge)

  • Hon. Lori S. Simpson

These judges oversee confirmation hearings, plan disputes, motions, and creditor objections for Subchapter V cases.

Subchapter V Trustees — District of Maryland

Monique D. Almy

Lawrence A Katz

Stephen Metz

Angela Shortall

Jolene Wee

Courthouse Locations in Maryland

Chapter 11 filings are handled at:

  • Baltimore Division: Garmatz Federal Courthouse — 101 W. Lombard Street, Suite 8530, Baltimore, MD 21201

  • Greenbelt Division: U.S. Courthouse — 6500 Cherrywood Lane, Suite 300, Greenbelt, MD 20770

Benefits of Subchapter V for Maryland Small Businesses

  • Keep your business running and retain ownership

  • Streamlined, cost-effective bankruptcy process

  • Reduced administrative burden and faster confirmation

  • Flexibility in restructuring debts and negotiating with creditors

  • Ability to discharge debts at the end of the repayment plan

Frequently Asked Questions (FAQ)

Q: How long does a Subchapter V case take?
A: Typically 3–5 years, depending on the complexity of the plan and business operations.

Q: Can I keep ownership of my business?
A: Yes. Unlike traditional Chapter 11, Subchapter V allows the debtor to remain in control as a debtor-in-possession.

Q: Is creditor approval required for confirmation?
A: In most Subchapter V cases, creditor votes are not required, streamlining the confirmation process.

Q: Who oversees my case?
A: A Subchapter V trustee is assigned to supervise the case and assist with plan feasibility, but the debtor manages daily operations.

Q: Can this help me avoid liquidation?
A: Yes. Subchapter V is designed to restructure debts while keeping your business intact.

Bankruptcy Near Me — Maryland Office
Phone: 301‑550‑5408
Email: info@bankruptcynearme.org

We provide professional, low-bono Subchapter V representation for Maryland small businesses. Let us help you restructure debt, preserve operations, and get back on track today.