Subchapter V for Trucking: Small-Business Bankruptcy
When freight rates soften and a couple of brokers start paying in ninety days instead of thirty, the truck note, the fuel card, and the factoring advance all come due at once. Subchapter V bankruptcy restructures that squeeze so your revenue miles fund the business again instead of the advance.
Keep the wheels turning
A carrier can be busy and still broke when the rate per mile drops and the receivables age out. Subchapter V reorganizes the equipment, fuel, and factoring debt into a plan you can run against, whether you pull one truck or dispatch a small fleet.
Trucking debts we restructure
- Financing on tractors and trailers
- Fuel card balances running ahead of your settlements
- Factoring advances and the chargebacks that follow them
- Past-due insurance premiums and repair bills
- IFTA and fuel tax stacked up between filings
- SBA loans and EIDL advances from leaner years
How Subchapter V helps carriers
- Hold your equipment and hold your operating authority
- Shut down repossession suits and creditor calls at filing
- Reset the truck and trailer notes to a workable monthly number
- Untangle what the factoring company actually owns
- Fits an owner-operator or a small fleet the same way
How it works
A clear path for carriers and owner operators.
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Step 1 of 4
Free consultation
We look at your truck loans, your fuel and factoring balances, and your settlement history to decide whether Subchapter V or a straight liquidation makes more sense.
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Step 2 of 4
File and stop collections
Once we file, the automatic stay stops the lender from grabbing the truck and stops the collection calls while you keep the loads moving.
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Step 3 of 4
Build the plan
We shape a three-to-five-year plan around the rate per mile and the settlements the operation can count on.
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Step 4 of 4
Stay on the road
With the plan confirmed, your freight income runs the business instead of the advance, and you keep the trucks and the authority.
Common questions about Subchapter V for Trucking Companies
Can I keep my operating authority and CDL?
Generally, yes. A Subchapter V filing does not, on its own, affect your operating authority or your CDL, so you can keep booking and running loads while the company reorganizes its debt.
What happens to my trucks?
The tractors and trailers you actually need stay with you, and we bring the notes on them down to a payment the settlements can cover instead of letting the lender pull equipment off the road.
What about my factoring company?
Factoring is usually the first fight in a trucking case, because the factor claims it already bought your receivables while the chargebacks keep landing and your cash disappears before it reaches you. When we file, we pin down exactly what the agreement sold, what is still yours to collect, and what the factor is genuinely owed, then fold that into the plan.
Does this work for owner operators and small fleets?
It works for both. A single owner-operator and a five-truck outfit can each use Subchapter V as long as the debt totals qualify, and we confirm that math before anyone files.