Statutory Overview
11 U.S.C. section 1191 is the confirmation switch for Subchapter V. Section 1191(a) governs consensual confirmation, where every impaired accepting class has accepted the plan and the standard section 1129(a) requirements are met (other than 1129(a)(8), (10), and (15)). Section 1191(b) provides the cramdown alternative: the court confirms the plan if it does not discriminate unfairly and is fair and equitable. Under 1191(c), the plan is fair and equitable with respect to a class of unsecured claims if all projected disposable income for the 3-to-5-year commitment period is applied to payments under the plan, or the value of property distributed is not less than that amount.
11 U.S.C. section 1191(b): "...the court, on request of the debtor, shall confirm the plan notwithstanding the requirements of such paragraphs if the plan does not discriminate unfairly, and is fair and equitable, with respect to each class of claims or interests that is impaired under, and has not accepted, the plan."
Because Subchapter V was enacted by the Small Business Reorganization Act of 2019 (effective 2020), case law is actively developing. The Seventh Circuit's courts have generally looked to sister-circuit bankruptcy-court opinions for guidance; the doctrine is still maturing, especially on the interaction between 1191(c) disposable-income commitments, 1192 discharge timing, and 1193(c) plan modification.
Leading Case Law in the Seventh Circuit
The Subchapter V opinions most frequently cited in the Seventh Circuit appear below. Because no federal circuit court has yet issued a comprehensive precedential opinion on section 1191(b) cramdown, the field is driven almost entirely by bankruptcy-court opinions and a small number of district-court affirmances. Status badges reflect this reality.
Persuasive In re Channel Clarity Holdings LLC, Case No. 21-07972 (Bankr. N.D. Ill. 2021)
N.D. Ill. Subchapter V cramdown decision.
Persuasive In re Franco's Paving LLC, 654 B.R. 107 (Bankr. S.D. Tex. 2023)
Cited in Indiana courts on disposable-income analysis.
Counsel should expect doctrine to shift. Subchapter V has been in effect for roughly five years; core questions about the commitment period, modifications under 1193(c), and interaction with 1192 discharge are actively being litigated. Check CourtListener and Westlaw Bankruptcy monthly for new in-circuit opinions.
Chapter 11 / Subchapter V Filing Volume in the Seventh Circuit
Across this circuit's bankruptcy districts, the Open Bankruptcy Project master dataset records 543 Chapter 11 cases, distributed as follows (district codes use the standard CM/ECF short form):
| District Code | Ch. 11 Cases |
|---|---|
ilnbk | 290 |
insbk | 183 |
innbk | 64 |
wiwbk | 3 |
wiebk | 2 |
ilsbk | 1 |
Chapter 11 counts are a reasonable proxy for Subchapter V and complex business fee-review activity. Consumer Chapter 7 and Chapter 13 volume is much larger and is not shown here.
Not every Chapter 11 case is a Subchapter V case, but Subchapter V is now the dominant small-business Chapter 11 form in most districts. Volume concentration tracks with experienced Subchapter V trustee pools, and the circuit's trustee rosters are the most practical indicator of where a case will run smoothly through confirmation.
Practice Tips for the Seventh Circuit
- N.D. Ill. has the most Subchapter V volume in the circuit; Channel Clarity Holdings is a common anchor citation.
- S.D. Ind. and N.D. Ind. apply the Sixth Circuit's analytical framework on cramdown because of limited Seventh Circuit authority.
- Wisconsin districts have low volume; most 1191 questions resolve by trustee negotiation.
These tips are distilled from published opinions and practitioner reports; they do not substitute for the local rules or the assigned judge's procedures. Before filing a plan or a 1191(b) confirmation motion, confirm the scheduling order, any standing orders on Subchapter V, and the appointed trustee's expectations for plan-exclusivity deadlines under section 1189(b).
Related Resources
- Who Qualifies for Subchapter V - Debt limit and eligibility basics.
- 1191(a) Consensual Confirmation - Requirements, discharge timing, effect.
- 1191(b) Cramdown - Fair and equitable, disposable-income commitment.
- Plan Requirements - Section 1190 plan content.
- Voting and Acceptance - Impaired class mechanics.
- Subchapter V Discharge - Section 1192 and timing.
- All Circuits - Browse every federal circuit.