Rochelle's Daily Wire

Contrary to the Fourth Circuit, five bankruptcy courts have now held there’s no such thing as nondischargeability for corporate Sub V debtors. The question is now before the Fifth Circuit.

In the Alex Jones corporate Subchapter V case, Bankruptcy Judge Christopher Lopez said that the later chapter 11 filing by Jones himself, with about $1.5 billion in debt, didn’t kick the corporate debtor out of Subchapter V and into ‘ordinary’ chapter 11.

A small business debtor must consent for a case to be converted to Subchapter V, Judge Robert Jones says.

A district judge in Florida upheld a Subchapter V plan that required automatic increases in payments to unsecured creditors based on actual disposable income.

Although deposed as debtor in possession, the Subchapter V debtor retains the sole power to file a chapter 11 plan.

The Fourth Circuit had recently held that both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).

After a technical correction by Congress, now only affiliates of reporting companies are excluded from Subchapter V of chapter 11.

Bankruptcy Judge Gunn found the power to revoke a small business designation and proceed under ‘traditional’ chapter11 in lieu of dismissing or converting to chapter 7.

Substantial consummation under Section 1193(b) was defined by the bankruptcy court to mean commencement of distributions to some but not all creditor classes.

Both individuals and corporations in subchapter V of chapter 11 are barred from discharging debts that are nondischargeable under Section 523(a).