Susan Seflin Sheds Light on Trustee Compensation Challenges in Subchapter V Bankruptcies for WSJ Pro Bankruptcy
Susan Seflin recently spoke with WSJ Pro Bankruptcy about the challenges trustees face when seeking compensation in reorganization cases filed under subchapter V, otherwise known as the Small Business Reorganization Act.
Subchapter V, designed to help small businesses restructure debt in the wake of the Covid-19 pandemic, has been beneficial for smaller companies seeking to reorganize their finances and start anew. However, a challenge lies in compensating trustees like Susan, who oversee court actions and aid businesses in emerging from bankruptcy. The law doesn’t ensure trustees’ compensation, and they face difficulties in getting paid, unlike traditional bankruptcy counsel, who often have retainers and are guaranteed some payment even if the case takes an unfavorable turn.
To read the full WSJ Pro Bankruptcy article, click here.