Post-Confirmation Reporting Timeline: 13-Week Cash Flow Monitoring Requirements
Subchapter V post-confirmation compliance is the process of meeting statutory reporting, fee payment, and plan-performance obligations after a Subchapter V plan is confirmed under 11 U.S.C. Section 1191. Post-confirmation obligations are governed by the confirmed plan, 11 U.S.C. § 1142, and applicable UST guidelines. Attorneys who master this compliance framework protect their clients from UST motions to dismiss or convert and position themselves as the go-to referral source for small business restructurings.
The confirmation order is not the finish line — it is the start of a monitoring period where the debtor must demonstrate it can actually perform under the plan. The monitoring period duration depends on the confirmed plan terms. The most effective monitoring tool is a rolling 13-week cash flow forecast updated weekly and compared against actual results.
A typical Subchapter V debtor with $3M in annual revenue should track five line items weekly: gross receipts, operating disbursements, plan payments, UST quarterly fee accruals, and professional fee reserves. When actual cash flow deviates significantly from the forecast in any given week — for example, a variance exceeding 15% — the attorney should flag the variance immediately, not wait for the next quarterly report.
The 13-week window captures one full quarter of operations plus a buffer week. If a debtor misses a plan payment in week 6, the attorney has seven weeks to restructure the payment schedule or seek a plan modification before the missed payment becomes a default trigger under the confirmed plan terms. Most plan default triggers activate after 30 or 60 days of non-payment, giving counsel a meaningful early warning window.
UST Quarterly Fee Calculations with Real Numbers
The United States Trustee charges quarterly fees on all post-confirmation disbursements, and these fees continue for the life of the plan. The fee schedule is progressive: for disbursements between $0 and $14,999.99 per quarter, the minimum fee is $325.1
UST quarterly fees are calculated on gross disbursements, not net income. A debtor that pays $50,000 in quarterly disbursements but operates at a $10,000 loss still owes the full fee on $50,000. Attorneys should build a quarterly fee accrual line item into the debtor's budget from day one of the plan term.
Consider a hypothetical Subchapter V debtor with $4M in revenue that confirms a plan requiring $8,000 monthly payments to unsecured creditors plus $3,000 monthly professional fee reserves. Total quarterly disbursements would be approximately $33,000.2 The UST quarterly fee on that amount would fall in the $15,000 to $74,999.99 tier, which carries a higher fee than the $325 minimum.1
Form 11-PCR: Professional Fee Reporting Obligations
Form 11-PCR is the post-confirmation quarterly report that confirms whether all UST quarterly fees owed as of the calendar quarter-end have been paid.2 The form requires the debtor to list total disbursements for the quarter, calculate the fee due, and certify payment.
The most common error on Form 11-PCR is miscalculating the disbursement base. Attorneys must include all disbursements from the debtor's accounts during the quarter — not just plan payments. This includes operating expenses, inventory purchases, payroll, and tax payments. For example, a debtor with $50,000 in quarterly disbursements that operates at a $10,000 loss still owes the full UST fee on $50,000.1 The UST cross-references these disclosures against fee applications filed in the case, so discrepancies between the form and the docket draw immediate scrutiny.
Form 11-PCR also requires disclosure of any professional fees paid during the quarter. If the debtor paid, for example, $5,000 to its bankruptcy counsel for post-confirmation work, that amount must appear on the form. The UST cross-references these disclosures against fee applications filed in the case, so discrepancies between the form and the docket draw immediate scrutiny.
Subchapter V Plan Default Triggers to Monitor
Plan default triggers fall into three categories: payment defaults, reporting defaults, and operational defaults. Payment defaults occur when the debtor misses a plan payment to creditors. Most confirmed plans include a 30-day cure period, but the UST may file a motion to dismiss or convert before that period expires if the debtor shows a pattern of late payments.
Reporting defaults arise when the debtor fails to file post-confirmation MORs or Form 11-PCR on time. Under 11 U.S.C. Section 1187, Subchapter V debtors must file MORs within 21 days of month-end.3 A single missed MOR can trigger a UST inquiry, and two consecutive missed reports often result in a motion to dismiss.
Operational defaults include failing to maintain insurance, selling assets outside the ordinary course without court approval, or incurring new debt beyond the limits set in the confirmed plan. A hypothetical debtor that sells its delivery truck for $25,000 without seeking court approval has likely triggered an operational default, even if the sale proceeds go toward plan payments.
Post-Confirmation MOR Structure and Statutory Deadlines
Post-confirmation MORs follow the same structure as pre-confirmation reports but with additional line items for plan payments and UST fee accruals. The statutory deadline is 21 days after month-end per 11 U.S.C. Section 1187.3 For a January reporting period, the MOR is due by February 21.
The MOR must include a profit-and-loss statement, balance sheet, cash receipts and disbursements detail, and a reconciliation of bank accounts. Post-confirmation, the MOR should also show the plan payment made that month, the cumulative plan payments to date, and the remaining balance due under the plan.
A common trap: debtors that file MORs on time but with incomplete data. For example, if the debtor reports $15,000 in gross receipts but the bank statements show $18,000 in deposits, the UST will flag the discrepancy. Attorneys should require debtors to submit bank statements alongside each MOR for cross-verification before filing.
Common Compliance Mistakes That Draw UST Objections
The most frequent compliance mistake is treating post-confirmation obligations as optional. Subchapter V debtors sometimes believe that confirmation ends court oversight. In reality, the UST continues to monitor the case until the plan is completed and the case is closed.
A second mistake is miscalculating the disbursement base on Form 11-PCR. Attorneys must include all disbursements — operating expenses, payroll, inventory, tax payments — not just plan payments.
A third mistake is failing to adjust UST quarterly fee accruals when disbursements change. A debtor that budgets $30,000 in quarterly disbursements but actually disburses $45,000 owes a higher fee. Attorneys should recalculate the fee each quarter based on actual disbursements, not the budgeted amount.1
Subchapter V Post-Confirmation Compliance Checklist for Attorneys
| Obligation | Frequency | Deadline | Source |
|---|---|---|---|
| File MOR | Monthly | 21 days after month-end | 11 U.S.C. § 11873 |
| Pay UST quarterly fee | Quarterly | Last day of calendar quarter | UST Fee Schedule1 |
| File Form 11-PCR | Quarterly | Within 30 days of quarter-end | UST Form 11-PCR2 |
| Update 13-week cash flow | Weekly | Every Monday | Best practice |
| Verify plan payment made | Monthly | By payment due date | Confirmed plan terms |
| Review insurance coverage | Quarterly | First week of quarter | Confirmed plan terms |
| Check for new debt or asset sales | Monthly | Before transaction | 11 U.S.C. § 1185 |
Your Next Step
Review your active Subchapter V post-confirmation cases and verify that each debtor has a current 13-week cash flow forecast, a UST quarterly fee accrual line item in their budget, and a calendar reminder for the 21st of each month for MOR filing. If any of these three items is missing, schedule a call with the debtor this week to close the gap. For questions on building a post-confirmation compliance system for your Subchapter V practice, contact [email protected].