U.S. Code » Title 11 » Chapter CHAPTER 11— REORGANIZATION › Subchapter SUBCHAPTER V— SMALL BUSINESS DEBTOR REORGANIZATION

11 U.S.C. § 1181

Inapplicability of other sections

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(a)In General.—Sections 105(d), 1101(1), 1104, 1105, 1106, 1107, 1108, 1115, 1116, 1121, 1123(a)(8), 1123(c), 1127, 1129(a)(15), 1129(b), 1129(c), 1129(e), and 1141(d)(5) of this title do not apply in a case under this subchapter.(b)Court Authority.—Unless the court for cause orders otherwise, paragraphs (1), (2), and (4) of section 1102(a) and sections 1102(b), 1103, and 1125 of this title do not apply in a case under this subchapter.(c)Special Rule for Discharge.—If a plan is confirmed under section 1191(b) of this title, section 1141(d) of this title shall not apply, except as provided in section 1192 of this title.(Added Pub. L. 116–54, § 2(a), Aug. 23, 2019, 133 Stat. 1079.)Statutory Notes and Related SubsidiariesEffective Date

Section effective 180 days after Aug. 23, 2019, see section 5 of Pub. L. 116–54, set out as an Effective Date of 2019 Amendment note under section 101 of this title.

Notes of Decisions
Cited in 56 cases (48 in the last 5 years), 2020–2026 · leading case: Avion Funding v. GFS Indus., 99 F.4th 223 (5th Cir. 2024).
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Avion Funding v. GFS Indus., 99 F.4th 223 (5th Cir. 2024). · cites it 3× “See 11 U.S.C. § 1181 et seq. Subchapter V relieves small business debtors from the absolute priority rule for repaying creditors, which was thought to unduly complicate their reorganization.”
Cal. Palms Addiction Recovery Campus, Inc., 87 F.4th 734 (6th Cir. 2023). · cites it 2× “See generally 11 U.S.C. §§ 1181–95. Even so, the statutory text dictates when courts should instead convert from subchapter V to chapter 7.”
Benshot, LLC v. 2 Monkey Trading, LLC, 142 F.4th 1323 (11th Cir. 2025). · cites it 4× “See 11 U.S.C. § 1181 et seq. As relevant to this appeal, Subchapter V allows these debtors to dis- charge their debts “except any debt…of the kind specified in sec- tion 523(a).”
California Palms Addiction Recovery Campus, Inc. v. United States Tr. (N.D. Ohio 2023). · cites it 3× “Subchapter V of Chapter 11of Title 11, 11 U.S.C. § 1181 to § 1195, streamlines the bankruptcy filing process and reduces costs for small business debtors.”
Fortuna Auction LLC (Bankr. S.D.N.Y. 2025). · cites it 3× “” 11 U.S.C. § 1181 (b). Under section 1191(a), the court is required to confirm a plan that meets all of the requirements of section 1129(a) other than paragraph (15).”
Ellingsworth Residential Cmty. Ass'n, In (Bankr. M.D. Fla. 2020). · cites it 2× “Because Guan holds an unsecured claim,16 the “fair and equitable” requirement is met if: 12 See 11 U.S.C. § 1181 (b). 13 11 U.S.C. § 1129 (b)(2)(B).”
Seven Stars on the Hudson Corp (Bankr. S.D. Florida 2020). · cites it 2× “its business;37 (5) the exclusive right (which cannot be terminated) to file a plan;38 (6) the ability to modify a claim secured only by a security interest in the debtor’s principal residence, if new value received in connection with granting the security interest was used…”
The Young Men's Christian Ass'n of Tope (Bankr. D. Kan. 2020). · cites it 2× “11 U.S.C. § 1181 (b). There has been no such order in this Subchapter V case.”
Jennings v. Lapeer Aviation, Inc. (Bankr. E.D. Mich. 2022). · cites it 2× “11 U.S.C. § 1181 , et. seq. On November 9, 2021, CG Acquisitions filed for chapter 11 bankruptcy, also electing to proceed under Subchapter V.”
Kevin Lynn Thurmon & Susan Jane Thurmon (Bankr. W.D. Mo. 2020). · cites it 2× “And there is 31 11 U.S.C. § 1181 (b). 32 The UST’s objection to the designation was filed on August 20, 2020.”
Arnold B Baker (Bankr. S.D. Tex. 2020). · cites it 2× “Thus, 38 11 U.S.C. §§ 1181–1195. 39 H.R. REP. NO. 116-171 (2019).”
Excellence 2000, Inc. (Bankr. S.D. Tex. 2022). · cites it 2× “21 See 11 U.S.C. §§ 1181 , 1191 (incorporating § 1129(a)(1)).”
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