The Subchapter V Trustee: Role, Powers, and Ethical Considerations

The Subchapter V trustee is a defining feature of the Small Business Reorganization Act, reshaping how small business Chapter 11 cases are administered. Operating in a hybrid role, the trustee facilitates plan negotiation, monitors compliance, and safeguards creditor interests without displacing the debtor or assuming full operational control of the business.

This program provides a practical, practice-focused overview of the Subchapter V trustee’s statutory duties, procedural responsibilities, and ethical boundaries. Participants will examine the trustee’s role across key case milestones, compare it to other bankruptcy trustee roles, and explore emerging legal and ethical issues affecting modern Sub V practice.

Key Topics Discussed:

• SBRA and the role of the Subchapter V trustee
• Statutory framework (11 U.S.C. §§ 1183–1185) and mandatory appointment
• Facilitative role in plan development and creditor engagement
• Comparison with Chapter 7, 11, and 13 trustees
• Key procedural milestones in Sub V cases
• Consensual vs nonconsensual plan administration
• Compensation structure and administrative realities
• Ethical issues: fiduciary duties, conflicts, and UPL concerns
• Emerging legal uncertainties in Sub V jurisprudence