In re Free Speech Sys., LLC

5 Citing cases

  1. Avion Funding, L.L.C. v. GFS Indus. (In re GFS Indus.)

    99 F.4th 223 (5th Cir. 2024)   Cited 3 times

    GFS proceeds under Subchapter V, enacted in 2019 to streamline Chapter 11 reorganizations for small business debtors whose debt does not exceed $7.5 million. See 11 U.S.C. § 1181 et seq.; id. § 1182(1); see also In re Free Speech Sys., LLC, 649 B.R. 729, 735 (Bankr. S.D. Tex. 2023) ("Subchapter V only applies when a debtor elects to proceed under it." (citing 11 U.S.C. § 103(i))). If a debtor's bankruptcy plan is confirmed as a consensual plan under § 1191(a), the dischargeability of its debts is governed by § 1141(d).

  2. In re Zhang Med.

    655 B.R. 403 (Bankr. S.D.N.Y. 2023)   Cited 2 times   1 Legal Analyses

    The Court notes that this issue has generated thoughtful but conflicting decisions by well-regarded bankruptcy judges across the country. Compare In re Free Speech Sys., LLC, 649 B.R. 729, 735 (Bankr. S.D. Tex. 2023) (Lopez, J.), and In re ComedyMX, LLC, 647 B.R. 457, 462-64 (Bankr. D. Del. 2022) (Goldblatt, J.), with In re Nat'l Small Bus. All., Inc., 642 B.R. 345, 348-49 (Bankr. D.C. 2022) (Gunn, J.). The Court rules for the Landlord on the first of these two contentions, finding that the debts scheduled by the Debtor or reflected in proofs of claim exceed $7.5 million.

  3. In re Hot'z Power Wash, Inc.

    655 B.R. 107 (Bankr. S.D. Tex. 2023)   Cited 3 times

    Allowing creditors' silence to force nonconsensual plans, especially as is the case here where a non-voting class is willfully withholding its vote, defeats the overarching policy preferences of Subchapter V.In re Free Speech Sys., LLC, 649 B.R. 729, 734 (Bankr. S.D. Tex. 2023) ("Subchapter V is a streamlined chapter 11 process and a debtor has to work from the outset to try to achieve a consensual plan."). In re Adelphia Communs. Corp., 368 B.R. 140, 261 (Bankr. S.D.N.Y. 2007) ("Regarding non-voters as rejecters runs contrary to the Code's fundamental principle, and the language of section 1126(c), that only those actually voting be counted in determining whether a class has met the requirements, in number and amount, for acceptance or rejection of a plan and subjects those who care about the case to burdens (or worse) based on the inaction and disinterest of others.

  4. In re Cyma Cleaning Contractors Inc.

    22-01377 (ESL) (Bankr. D.P.R. Oct. 27, 2023)

    "Unlike National Small … this case is barely at its inception."); In re Free Speech Sys., LLC, 649 B.R. 729, 734 (Bankr.S.D.Tex. 2023) (elected not to revoke Subchapter V designation, finding that the "Bankruptcy Code and … Rules don't provide a standard for assessing a motion to either amend a bankruptcy petition to revoke a Subchapter V election or for the Court to revoke it outright. There is … a decision holding that a court is empowered to de-designate a Subchapter V case and allow it to proceed as a regular chapter 11, under, among other things, Section 105 of the Bankruptcy Code.

  5. In re Franco's Paving LLC

    654 B.R. 107 (Bankr. S.D. Tex. 2023)   Cited 4 times

    Subchapter V is intended to encourage consensual plans confirmed under § 1191(a). In re Free Speech Sys., LLC, 649 B.R. 729, 734 (Bankr. S.D. Tex. 2023) ("Subchapter V is a streamlined chapter 11 process and a debtor has to work from the outset to try to achieve a consensual plan."). One of the subchapter V trustee's enumerated duties under § 1183 is to "facilitate the development of a consensual plan."