---
title: "Compare a small business with subchapter V eligibility and the plan contents"
url: "https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/advise-directors-on-entering-small-business-restructuring/united-states"
type: "task_jurisdiction_version"
site: "AI Law Framework"
id: "A8-L20261018-3-US"
practice_area: "Insolvency, Restructuring & Bankruptcy"
tier: "yellow"
lawyer_review: "required"
jurisdictions: ["US"]
last_reviewed: "2026-10-22"
---

# Compare a small business with subchapter V eligibility and the plan contents

> From the debt schedule the lawyer supplies, list secured and unsecured noncontingent liquidated debts, affiliate and insider debts, and whether at least half arose from commercial or business activities.…

Canonical page: https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/advise-directors-on-entering-small-business-restructuring/united-states  
Last reviewed: 2026-10-22

Site index for agents: https://ailawframework.com/llms.txt

## Key facts

| Fact | Value |
| --- | --- |
| Practice area | [Insolvency, Restructuring & Bankruptcy](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy.md) |
| Human involvement | Yellow: Lawyer and AI draft together |
| How AI is used | From the debt schedule the lawyer supplies, list secured and unsecured noncontingent liquidated debts, affiliate and insider debts, and whether at least half arose from commercial or business activities. Do not state that the debtor is eligible. |
| What the lawyer must review | Section 1182 defines a subchapter V debtor as a small business debtor. Section 101(51D) defines that term, including the commercial-or-business-activities test, the exclusion for a person whose primary activity is owning single-asset real estate, the 50-percent commercial-debt test, and the exclusions for a group of affiliated debtors over the cap and for a reporting company under the Securities Exchange Act and its affiliates. The compilation’s adjustment note, citing the Judicial Conference notice of 30 January 2025, 90 F.R. 8941, effective 1 April 2025, adjusts the § 101(51D) dollar amount to $3,424,000. The lawyer confirms that figure is the one in force on the petition date. A subchapter V plan must include a brief history, a liquidation analysis and payment projections, and must provide for submission of future earnings to the trustee as necessary to execute the plan (11 U.S.C. § 1190). The court holds a status conference not later than 60 days after the order for relief, unless that period is extended under § 1188(b). |
| Written for | United States |
| Applies to | [Advise directors on entering small business restructuring](https://ailawframework.com/practice/insolvency-restructuring-and-bankruptcy/advise-directors-on-entering-small-business-restructuring.md) |

## Checking plan

- What the AI does: From the debt schedule the lawyer supplies, list secured and unsecured noncontingent liquidated debts, affiliate and insider debts, and whether at least half arose from commercial or business activities. Do not state that the debtor is eligible.
- Basis: Checked against the linked sources on 22 October 2026. Confirm the current instrument before reliance.

## Notes

- Do not use an expired temporary subchapter V debt cap. On the text opened, § 1182 points to the small-business-debtor definition, and the adjusted § 101(51D) figure effective 1 April 2025 is $3,424,000.
- The $10,000,000 figures in § 101 are family-farmer amounts, not the small-business-debtor cap.

## Sources

- [11 U.S.C. § 1182, subchapter V definitions](https://www.law.cornell.edu/uscode/text/11/1182) (checked 2026-10-22)
- [11 U.S.C. § 101, definitions, including small business debtor](https://www.law.cornell.edu/uscode/text/11/101) (checked 2026-10-22)
- [11 U.S.C. § 1190, contents of a subchapter V plan](https://www.law.cornell.edu/uscode/text/11/1190) (checked 2026-10-22)
- [11 U.S.C. § 1188, status conference](https://www.law.cornell.edu/uscode/text/11/1188) (checked 2026-10-22)

## Forms and precedents for this task

| Form or precedent | Kind | AI level | Summary |
| --- | --- | --- | --- |
| [Small business restructuring eligibility record](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/restructuring-eligibility-record.md) | Checklist | Yellow | Record of the section 453C tests and the appointment limits ASIC describes, before directors appoint a restructuring practitioner. It is not the appointment. |
| [Restructuring proposal period diary](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/restructuring-proposal-diary.md) | Checklist | Yellow | Diary of the proposal and acceptance periods ASIC states for a small business restructuring, after the practitioner is appointed. It does not draft the plan. |
| [Restructuring creditor classification sheet](https://ailawframework.com/precedents/insolvency-restructuring-and-bankruptcy/restructuring-creditor-classification.md) | Form | Yellow | Sheet for sorting creditors of a company in small business restructuring into affected creditors, excluded creditors and admissible debts, as ASIC describes those terms. |

Signed-in accounts can read the full text of each one.

*Practice guidance for planning and review. Confirm current primary sources and the requirements of the actual matter. This is general information, not legal advice.*