Chapter 11
Defense System
The complete guide to restructuring business debt through Chapter 11 bankruptcy — including the Subchapter V fast track that could save you $200,000+ in legal fees.
One-time payment. Instant access via your dashboard.
The cost difference is staggering
Qualifying for Subchapter V instead of full Chapter 11 can save your business hundreds of thousands of dollars. Understanding the difference is the first step.
| Factor | Full Chapter 11 | Subchapter V | Your Savings |
|---|---|---|---|
| Attorney Fees | $50,000 - $500,000+ | $15,000 - $50,000 | Up to $450,000 |
| Creditors' Committee | Required (you pay their attorneys too) | Not required | $50,000 - $200,000 |
| U.S. Trustee Quarterly Fees | $4,875 - $30,000/quarter | None | $20,000 - $120,000/year |
| Disclosure Statement | Required ($10,000 - $50,000 to prepare) | Not required | $10,000 - $50,000 |
| Timeline to Confirmation | 12 - 24 months | 3 - 6 months | 6 - 18 months faster |
| Owner Keeps Equity? | Only if all creditors paid in full | Yes — no absolute priority rule | Keep your business |
| Plan Approval | Creditor voting required | Cramdown available without vote | More control |
| Debt Limit | No limit | $3.4M (but see below) | — |
The difference between full Chapter 11 and Subchapter V in professional fees alone can exceed $200,000.
Subchapter V cases typically confirm in 3-6 months vs. 12-24 months for full Chapter 11.
In Sub V, owners keep their equity stake. In full Ch 11, equity holders get nothing unless all creditors are paid in full.
The debt categorization strategy that could
save you $200,000+
The Subchapter V debt limit is $3.4 million. If your debts exceed this, you're forced into full Chapter 11 — which costs $50,000 to $500,000+ more. But here's what many attorneys don't know:
Disputed Debts Don't Count
Debts that are genuinely disputed do not count toward the $3.4M limit. PPP loans where forgiveness was wrongly denied, EIDL loans with contested terms, and FCA claims you're actively fighting are all potentially "disputed."
Unliquidated Debts Don't Count
If the amount of a debt hasn't been fixed — like a pending FCA lawsuit where damages haven't been determined — it's "unliquidated" and doesn't count toward the limit. This is critical for FCA defendants.
Debts of Another Entity Don't Count
If you personally guaranteed debts that belong to a separate LLC, corporation, or business entity, those debts may not count as your "business debts" for the 50% test. Proper entity structuring analysis can be the difference.
Real-world example:
A business owner with $5.2M in total debt — including a $1.5M disputed PPP loan and a $800K unliquidated FCA claim — may actually have only $2.9M in countable debt. That qualifies for Subchapter V, saving potentially $200,000-$400,000 in legal fees and 12+ months of time.
What's inside the defense system
14 chapters covering both full Chapter 11 and Subchapter V, plus appendices with checklists, templates, and decision frameworks.
Ch 1: Understanding Chapter 11
How reorganization works, who uses it, and why it exists. The fundamental premise that a reorganized business is worth more alive than dead.
Ch 2: Ch 11 vs. Sub V vs. Ch 7
Detailed comparison of all three paths — costs, timelines, requirements, and outcomes. The decision framework that determines your optimal path.
Ch 3: Subchapter V Fast Track
Eligibility, the 60-day plan timeline, consensual vs. cramdown, and the critical debt categorization strategy for disputed/unliquidated debts.
Ch 4: Full Chapter 11
Creditors' committee, disclosure statements, plan solicitation, voting requirements, and when full Ch 11 is necessary despite the higher cost.
Ch 5: Pre-Petition Planning
The 90 days before filing. Financial assessment, debt categorization, DIP bank setup (Axos), spending strategy, and document preparation.
Ch 6: The Automatic Stay
Your immediate shield. What it stops (collections, lawsuits, foreclosures) and the critical government exception for FCA investigations.
Ch 7: DIP Operations
Running your business during bankruptcy. Responsibilities, what requires court approval, and maintaining operations.
Ch 8: Building Your Plan
Plan components, claim classification, financial projections, the feasibility test, and how to design a confirmable plan.
Ch 9: Government Claims
Special treatment of SBA claims (EIDL/PPP), priority tax claims, and how government debts are handled in reorganization.
Ch 10: FCA Liability & Bankruptcy
Timing your filing, dischargeability of FCA obligations, DOJ as creditor, relator claims, and strategic advantages of filing during FCA litigation.
Ch 11: Creditor Negotiations
Negotiation strategies, cramdown provisions, using the liquidation analysis as leverage, and achieving a consensual plan.
Ch 12: Post-Confirmation
Life after reorganization. Plan payments, discharge timing, rebuilding credit, and emerging stronger.
Ch 13: Monthly Operating Reports
MOR requirements, common mistakes, bank statement reconciliation, and compliance best practices.
Ch 14: Selecting Your Team
How to choose a bankruptcy attorney, accountant, and financial advisor. Key qualifications, red flags, and the Sub V trustee's role.
Appendix: Checklists, Templates & Decision Frameworks
Pre-filing checklist (16 items), MOR template outline, key resources, and the Chapter 7 vs. Sub V vs. Full Ch 11 decision framework. Print these and share with your attorney.
Who this defense system is for
Business Owners with $1M+ Debt
Whether from PPP, EIDL, FCA judgments, or general business debt — if you're considering bankruptcy, you need to understand your options before spending $50K+ on an attorney.
FCA Defendants
Facing a False Claims Act lawsuit? Chapter 11 can be a strategic tool. This system covers the intersection of FCA liability and bankruptcy in detail.
PPP/EIDL Borrowers
Unforgiven PPP loans and EIDL debt can be restructured through Chapter 11. The debt categorization strategy may qualify you for the cheaper Sub V track.
Healthcare Providers
Medicare/Medicaid billing disputes and FCA enforcement are the #1 source of healthcare bankruptcy. Understand how to protect your practice.
Government Contractors
Contract disputes, FCA claims, and cash flow problems from government work. Chapter 11 can restructure while you continue performing.
Attorneys & CPAs
Advising clients on bankruptcy? This system provides the framework your clients need before they walk into your office — saving everyone time and money.
Defaulted on Your EIDL Loan?
The SBA has referred 369,000+ EIDL loans to Treasury for collection. Chapter 11 Subchapter V stops collection immediately and protects your personal assets.
Stops Garnishment
The automatic stay halts wage garnishment, bank levies, and tax refund seizure the moment you file.
Eliminates 30% Surcharge
Treasury adds 30% to your balance on referral. Filing before or during collection can eliminate this.
Restructure on Your Terms
Instead of the government dictating repayment, you propose a plan that works for your business.
The only defense system built for you, not your attorney
Existing bankruptcy education is designed for lawyers earning CLE credits. This defense system is designed for the business owner who needs to understand what's happening to their company — and how to survive it.
| Feature | ABI Masterclass | CLE Platforms | Our System |
|---|---|---|---|
| Audience | Lawyers | Lawyers | Business Owners / Defendants |
| Price | $300–$600/year | $50–$400/course | $2,997 (one-time) |
| Focus | Legal education | Legal credits | Survival + strategy |
| Subchapter V Coverage | Yes | Limited | Core focus |
| Inability-to-Pay Strategy | — | — | Primary focus |
| Liquidation Analysis | — | — | Step-by-step + templates |
| DOJ Strategy | — | — | Included |
| Real-World Application | Medium | Low | Very high |
| Templates Included | — | — | Checklists & frameworks |
| Designed for Non-Lawyers | — | — | 100% — plain English |
| Debt Categorization Strategy | — | — | Disputed/unliquidated analysis |
| FCA + Bankruptcy Integration | — | — | Dedicated chapter |
ABI = American Bankruptcy Institute. CLE = Continuing Legal Education platforms (Lawline, PLI, etc.)
When Should You Purchase This System?
This system is designed to be purchased and completed 3 to 6 months before your anticipated bankruptcy filing date. This timing gives you adequate time to implement the pre-petition planning strategies, consult with your attorney, and make an informed filing decision. It also ensures your purchase falls well outside the 90-day preference period under bankruptcy law.
IMPORTANT TIMING NOTICE
If you are considering bankruptcy, we recommend purchasing this system at least 90 days before your anticipated filing date. Payments made within 90 days of a bankruptcy filing may be subject to trustee review as preferential transfers under 11 U.S.C. § 547. Always consult a qualified bankruptcy attorney regarding your timing. This is educational information only — not legal advice.
The math is simple
Walking into a bankruptcy attorney's office uninformed means paying $300-$500/hour for education you could have gotten here. This defense system doesn't replace your attorney — it makes every hour with them count.
One-time payment. Instant access via your dashboard.
Related resources
"I built these materials because I went through this myself." When I received my PPP investigation notice, I spent months and tens of thousands of dollars figuring out what to do. I created this system so you don't have to start from zero like I did.
— Gena, Founder of PPP Fairness
Traditional Chapter 11 vs. Subchapter V — The Numbers
See the real cost difference between going in unprepared vs. having a strategic plan.
| Without This System | With This System | |
|---|---|---|
| Traditional Ch. 11 legal fees | $100,000 – $300,000 | $25,000 – $75,000 (SubV) |
| Time to plan confirmation | 12 – 24 months | 3 – 6 months (SubV) |
| Business equity retention | Often lost | Preserved (SubV) |
| Pre-filing preparation | Reactive, costly mistakes | Strategic, planned |
Savings estimates based on typical attorney fees and case timelines. Individual results vary.
Disclaimer: This defense system is educational guidance only and does not constitute legal advice. Bankruptcy law is complex and varies by jurisdiction. Always consult a qualified bankruptcy attorney licensed in your state before making any filing decisions. All sales are final. Digital products are non-refundable.