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. Sub Chapter 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.