SUBCHAPTER V OF CHAPTER 11 | COORDINATED CH. 7 / CH. 11 STRATEGY
Representation of an individual debtor in a Subchapter V Chapter 11 case (Case No. 23-40605) in the U.S. Bankruptcy Court for the Northern District of California. The matter was the second phase of a coordinated, two-case strategy: the firm first filed a Chapter 7 petition on behalf of the client’s related operating business (Case No. 23-40604, filed May 25, 2023, described below in the Chapter 7 Matters section), which used the Chapter 7 process to wind down operations and liquidate in an orderly manner.
With the operating entity shut down, the client remained personally exposed on guarantees related to the business — debts that would have been immediately collectible without further relief. The firm then filed an individual Chapter 11 case under Subchapter V and obtained confirmation of a plan that restructured the residual personal guarantee liability, completing the client’s path to a fresh start. The schedules listed over 3.7 million in liabilities. On December 27, 2023, Debtor confirmed a plan confirmed with a 82% dividend to general unsecured creditors. This Subchapter V debtor received an immediate discharge given that confirmation was consensual under 11 U.S.C. § 1129(a)
Result: Business wound down via Ch. 7; personal guarantee debt restructured under confirmed Sub V plan.
U.S. Bankruptcy Court, Northern District of California
