Cost Comparison: Sub V vs Traditional Chapter 11
| Cost Item | Subchapter V | Traditional Ch. 11 |
|---|---|---|
| Court filing fee | $1,738 | $1,738 |
| Attorney fees (typical) | $4,000 - $20,000 | $50,000 - $200,000+ |
| Attorney fees (complex) | $30,000 - $50,000+ | $200,000 - $1M+ |
| UST quarterly fees | Not required | $4,875 - $250,000/quarter |
| Trustee compensation | 3-10% of plan distributions | N/A (debtor in possession) |
| Creditors committee costs | N/A (no committee) | $50,000 - $500,000+ |
| Disclosure statement costs | N/A (not required) | $10,000 - $50,000 |
The Filing Fee: $1,738
The court filing fee for any Chapter 11 case -- including Subchapter V -- is $1,738 as of 2026. This is uniform across all federal districts. Unlike Chapter 7, there is no fee waiver for Chapter 11 filings. Installment payments (up to 4 installments) are available.
Attorney Fees
Sub V attorney fees are dramatically lower than traditional Chapter 11 because the process eliminates several expensive components:
- No disclosure statement -- saves $10,000-$50,000 in legal work
- No creditors committee -- reduces adversarial negotiation costs
- Compressed timeline (4-8 months) -- fewer billable hours than 12-24 month traditional cases
- Sub V trustee facilitates -- reduces the debtor's attorney workload in negotiations
For straightforward cases with cooperative creditors: $4,000 to $15,000. For contested confirmation, adversary proceedings, or complex assets: $30,000 to $50,000+.
Fee scrutiny: All attorney fees in bankruptcy are subject to court review under 11 U.S.C. § 329 and Bankruptcy Rule 2016. Courts can order disgorgement of excessive fees -- even flat-fee arrangements.
Sub V Trustee Compensation
The Sub V trustee is paid from plan distributions, typically 3-10% of payments. This is an administrative expense -- factor it into your plan projections from day one.
Under a consensual plan (§ 1191(a)), the trustee's role ends at confirmation (unless the plan provides otherwise). Under cramdown (§ 1191(b)), the trustee continues making distributions for the entire 3-5 year plan period.
UST Fee Savings
Traditional Chapter 11 debtors must pay quarterly fees to the United States Trustee based on disbursements. Sub V eliminates this entirely. For a business distributing $500,000 over a 5-year plan, that is roughly $97,500 in UST fees avoided.
| Quarterly Disbursements | Trad. Ch. 11 UST Fee | Sub V Fee |
|---|---|---|
| $0 - $14,999 | $325 | $0 |
| $15,000 - $74,999 | $650 | $0 |
| $75,000 - $149,999 | $975 | $0 |
| $150,000 - $299,999 | $1,625 - $1,950 | $0 |
| $300,000 - $999,999 | $4,875 | $0 |
| $1,000,000+ | $6,500 - $250,000 | $0 |
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