Courtney Gilmer Appointed Subchapter V Trustee for Middle and Western Districts of Tennessee
EmergeLaw, PLC is pleased to announce that Courtney Gilmer, a restructuring attorney and Tennessee Rule 31 Listed Mediator, has been appointed to serve as a Subchapter V Trustee for the Middle and Western Districts of Tennessee. Subchapter V is a relatively new but important option for small businesses seeking to efficiently restructure under Chapter 11. The Sub V Trustee helps facilitate the process by working with all stakeholders to achieve a successful result.
Subchapter V is a creation of the Small Business Reorganization Act that went into effect on February 19, 2020. Initially it was limited to debtors with less than $2,725,625 in total debt, but as part of the 2020 CARES Act Congress increased the debt limit to $7,500,000.
The Subchapter V Trustee’s most important duties are to “facilitate in the development of a consensual plan of reorganization,” and to appear and be heard at the new “status conference.” The Trustee does not have a duty to investigate the financial affairs of the Debtor (as is required by chapter 7 and 13 trustees), but does have general oversight requirements as imposed by section 1106(a)(3), through 11 U.S.C. §1183(b)(2). The Court can expand the duty and role of a Subchapter V Trustee for “cause” and the specified expansion is listed in § 1183(b)(2).
Click here for a more detailed analysis of Subchapter V.
About EmergeLaw, PLC
EmergeLaw is a boutique law firm that represents small and middle market businesses and their owners in debt workouts, Chapter 11 reorganizations, Subchapter V restructurings, and other proceedings to help them deleverage and reposition for future success. Applying decades of experience and a specialized toolkit, our Nashville business restructuring attorneys help entrepreneurs, family businesses, private equity funded companies, and real estate investors maximize value in ways that many clients find unexpectedly efficient and effective.