Chapter 11 SmBus Sub V Non-Consensual Plan
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Chapter 11 Small Business Subchapter V: NON-Consensual Plan
Last Updated: March 17, 2025

11 U.S.C.
Fed. R. Bank. P. 1191(a), 1141(d)(1)(A) and 1181(a) 

Related Topics: Ch. 11 SmBus Sub V Petition Filing, Ch. 11 SmBus Sub V: Procedural Orders, Ch. 11 SmBus Sub V Plan (Filing), Scheduling Ch. 11 SmBus Sub V Plan Confirmation Hearing , Ch. 11 SmBus Sub V: Plan Confirmation

NON-CONSENSUAL PLAN: Plan Confirmed Over the Objections of Creditors, under 1191(b) (Non-Consensual)

(Non-Consensual) Plan Payment Period: Duration 3 to 5 Years

  1. During the Payment Period:
  • Debtor will make payments to the Trustee
  • Trustee is responsible for making creditor payments.

What To Do:

  1. Plan Payment Status (Non-Consensual) Deadline = 60 Days + 5 Years From Confirmation

    • Review case for the Notice of Completion of Plan Payments when the deadline appears in CMA.

      • If Notice is NOT Filed:

        • Docket Completion of Plan Payments/ Discharge Request Update (SubV Ch11 Only)

          [Virtual Event] "Pursuant to 11 USC 1192 a notice of completion of plan payments and a request for entry of discharge must be filed before discharge can be entered."

        • Push Deadline Out an Additional 30-Days.

        • Set a SetHrg Flag; Email the Calendaring Clerk to set a Status Hearing on Completion of Plan Payments.

      • If Notice IS Filed:

        • Terminate the Deadline (no action required)

B. After the Plan Payment Period:

  • Debtor makes payments directly to creditors.

NOTICE OF SUBSTANTIAL CONSUMMATION

Notice of Substantial Consummation will be filed by the debtor at some point during the case.

  • Docket [Bankruptcy > Notices > Notice of Substantial Consummation]

NOTE: Case will remain open AFTER Substantial Consummation

Subchapter V Trustee's services are NOT terminated if a Non-Consensual plan is confirmed until discharge.

What To Do:

  1. Status Deadline re: Filing of (Non-Consensual) Substantial Consummation: 3-Years from Confirmation 

    • When the Substantial Consummation Status Deadline Appears in CMA:

      • Review the docket for filing of the Notice of Substantial Consummation

        • If Notice NOT filed by the 3-year deadline (and Plan was confirmed)

          • Set a SetHrg flag; Email the Calendar Clerk to set a Status of Substantial Consummation Hearing

        • Notice of Substantial Consummation IS Filed

          • Terminate Deadline (no action required)

    • Case Will Remain Open AFTER Substantial Consummation, Until:

      • Trustee has Distributed ALL Plan Payments

      • Trustee has filed the Final Report and Account (TFR)

      • No remaining matters exist for which the court must continue to exercise jurisdiction.

    • Subchapter V Trustee's services are NOT terminated if a Non-Consensual plan is confirmed until discharge.

DEBTOR DISCHARGE:  Completion of Plan Payments

Under a Non-Consensual Plan (Pursuant to 11 USC 1192), Discharge may granted after the debtor completes all payments due within the first 3 years of the Plan (or a Plan not to exceed 5 years).

Once ALL Plan Payments Under the Non-Consensual Plan are Completed, Debtor will file:

  1. Notice of Completion of Plan Payments and Request for Discharge
    1. [Bankruptcy > Plan > Notice of Completion of Plan Payments and Request for Discharge]

What To Do:

  1. Complete Quality Control.

  2. Wait the 14-Day Objection Period

    1. Objection Filed:  ObjHrgSet Flag will be set. Calendaring Clerk will set a Hearing.

    2. No Objections Filed:

      1. Clerk's Office will upload the proposed Order of Discharge and send it to the Judge for signing.

        1. [Bankruptcy > Proposed Order Upload > Single Order > Discharging Debtors (auto form)]

          1. Form 318ORV2: Individual, Non-Consensual Plan, AFTER Completion of Plan Payments

          2. Form 318ORV3: Non-Individual, Non-Consensual Plan, AFTER Completion of Plan Payments

If the Notice of Completion of Plan Payments and Request for Discharge is NOT FILED within 5-Years + 60-Days after Plan Confirmation (1191b), a reminder will be sent:

  1. Completion of Plan Payments / Discharge Request Update (Ch. 11 Sub V)

    1. [Bankruptcy > Court Events > Completion of Plan Payments/Discharge Request Update (Ch. 11 Sub V)]

    2. Docket Text will read, "Pursuant to 11 USC 1192 and 11 USC 1141(d)(5)(A) a notice a completion of plan payments and motion for entry of discharge must be filed before discharge can be entered."

  2. Wait for 30-Days. If nothing is filed, set a sethrg flag.

    1. [Bankruptcy > Court Events > Set-Reset Flags]

    2. Select "sethrg" flag. Add a note requesting a Status Hearing and stating the reason.

  3. Calendaring Clerk will schedule the Status Hearing

    1.  [Bankruptcy > Court Events > Hearing Sched/ Cont/ Resched, re: Status Hearing]

DISCHARGE of SUB V TRUSTEE

Subchapter V Trustee is terminated upon entry of the Debtor's Order of Discharge.

What To Do:

  1. Discharge of the Chapter 11 Sub V Trustee

    1. Docket the Trustee Discharge 1183(c)(1) Event (Virtual Entry)

      1. [Bankruptcy > Court Events > Trustee Discharge 1183 (c)(1)]

      2. Select the Trustee no longer associated with the case.

      3. Review docket text.

 

UPDATES

03/17/2025  Page Origination