Chapter 11 Subchapter V Bankruptcy in California

If you are a small business owner in California facing financial challenges, Chapter 11 Subchapter V bankruptcy offers a streamlined way to restructure debts, maintain operations, and protect ownership.

At Bankruptcy Near Me, we guide California businesses through every step of the Subchapter V process — from eligibility assessment and plan drafting to confirmation and discharge.

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, designed to make bankruptcy faster, simpler, and more affordable for small businesses.

Key features include:

  • Streamlined procedures and reduced formalities compared to traditional Chapter 11

  • Lower administrative costs and fewer court requirements

  • Debtor retains control of business operations while restructuring debts

  • Trustee-supervised process to assist in plan negotiation and confirmation

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

Who Qualifies for Subchapter V in California?

To file a Subchapter V case in California, your business must:

  • Be a small business debtor (corporation, LLC, partnership, or sole proprietorship)

  • Have aggregate debts of $7.5 million or less (excluding insider debts)

  • Conduct business primarily within the United States and California for filing purposes

  • Engage in a trade or business with regular operations

Individual business owners may qualify if their business meets the debt threshold.

The Subchapter V Process in California

  1. Filing the Petition: Submit your Subchapter V petition to the U.S. Bankruptcy Court for the Central District of California (or other applicable district).

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

  3. Appointment of Subchapter V Trustee: A trustee is appointed to help with plan negotiation and feasibility.

  4. Debtor-in-Possession Role: The business owner maintains control over daily operations.

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

  6. Confirmation Hearing: Court reviews and confirms the plan; creditor approval 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 previous obligations.

Subchapter V cases are usually faster and more affordable than traditional Chapter 11 cases.

Judges & Trustees — Central District of California

Bankruptcy Judges

Albert, T. (Santa Ana)

Barash, M. (San Fernando Valley, Northern)

Bason, N. (Los Angeles)

Bluebond, S. (Los Angeles)

Brand, J. (Chief Judge) (Los Angeles)

Clarkson, S. (Riverside, Santa Ana)

Clifford III, R. (Northern)

Houle, M. (Santa Ana)

Kaufman, V. (San Fernando Valley)

Klein, S. (Los Angeles)

Kwan, R. (Los Angeles)

Mund, G. (San Fernando Valley)

Reyes Bordeaux, M. (Riverside)

Russell, B. (Los Angeles)

Saltzman, D. (Los Angeles, Northern)

Smith, E. (Santa Ana)

Tighe, M. (San Fernando Valley)

Yun, S. (Riverside)

Zive, G. (Los Angeles)

Zurzolo, V. (Los Angeles)

Subchapter V Trustees

Arturo M. Cisneros

Caroline Djang

M. Douglas Flahaut

John-Patrick Fritz

Robert Goe

Gregory Jones

Susan Seflin

Mark Sharf

Courthouse Locations in California

You can file Subchapter V petitions in the Central District at:

  • Los Angeles Division: 255 E Temple St, Los Angeles, CA 90012

  • Riverside Division: 3420 Twelfth St, Riverside, CA 92501

  • Santa Ana Division: 411 W Fourth St, Santa Ana, CA 92701

Benefits of Subchapter V for California Small Businesses

  • Keep ownership of your business while restructuring debts

  • Streamlined, cost-effective bankruptcy process

  • Reduced administrative burden and faster confirmation

  • Flexibility in restructuring debts and negotiating with creditors

  • Discharge of debts at the end of the repayment plan

Low-Bono Representation for Subchapter V

At Bankruptcy Near Me, we offer affordable, expert Subchapter V representation, including:

  • Eligibility assessment and intake

  • Plan preparation and filing with the court

  • Guidance with trustee and creditors

  • Representation at confirmation hearings

  • Ongoing support through plan implementation

Call 714‑798‑2544 or email info@bankruptcynearme.org to see if your business qualifies for low-bono Subchapter V representation.

Frequently Asked Questions (FAQ)

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

Q: Can I keep ownership of my business?
A: Yes. 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, simplifying the process.

Q: Who oversees my case?
A: A Subchapter V trustee supervises the case and helps ensure plan feasibility but does not take over daily operations.

Q: Can Subchapter V prevent liquidation?
A: Yes. The plan is designed to restructure debts while keeping the business running.

Bankruptcy Near Me — California Office
Phone: 714‑798‑2544
Email: info@bankruptcynearme.org