Chapter 11 Small Business Case
Last Updated: October 16, 2018

Differences between a Chapter 11 Small Business Case and a regular Chapter 11 case:

If a debtor is a small business under 11 U.S.C. 1121(e), the case is put on a "fast track" and treated differently than a regular chapter 11 case under the Code.

• On request of a party in interest and for cause, the court may order that a creditors' committee not be appointed. 11 U.S.C. 1102(a)(3).

• If a creditors' committee is appointed, the small business designation, related deadlines, and SmBus flag will be removed. If an order is entered determining that the committee is not active and meets the requirements to be a small business, the case will proceed as a small business. Rule 1020(c).

• The debtor has 180 days from the date of the order for relief within which only the debtor may file a plan. After the 180-day period expires, any party in interest may file a plan; however, all plans must be filed within 300 days from the date of the order for relief. 11 U.S.C. 1121(e). (The filing of a voluntary bankruptcy petition constitutes an "order for relief." 11 U.S.C. 301.)

• The court may conditionally approve a disclosure statement, subject to final approval after notice and a hearing. Solicitation of votes for acceptance or rejection of the plan may proceed based on the conditional approval of the disclosure statement. Thereafter, the disclosure statement hearing may be combined with the confirmation hearing. 11 U.S.C. 1125(f).

• The final confirmation hearing MUST be held (and plan confirmed) within 45 days from the date the plan was filed, unless the time for confirmation is extended. A 28-day notice is required, pursuant to Rule 2002(b).

Additional Filing Requirements (must file with the petition or within 7 days, or provide a statement under oath explaining the absence of such documents):

• Small Business Balance Sheet (Miscellaneous > Small Business Balance Sheet)

• Small Business Statement of Operations (Miscellaneous > Small Business Statement of Operations)

• Small Business Cash Flow Statement (Miscellaneous > Small Business Cash Flow Statement)

• Small Business Federal Income Tax Return (Miscellaneous > Tax Documents)

How a Chapter 11 Small Business Case is Designated:

In a chapter 11 voluntary case, the debtor will state in the petition whether the debtor is a small business.

In a chapter 11 involuntary case, the debtor may elect to be considered a small business by filing a written statement of election not later than 14 days after the date of the order for relief [Bankruptcy > Miscellaneous > Small Business Election].

When a case converts to a Chapter 11, and the debtor is a small business, the debtor will file an Amended Petition.