News
Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP)
American Bankruptcy Institute reports, that on 8/29/25, Attorney General Pamela Bondi has selected Ramona D. Elliott to serve as Acting Director of the Justice Department’s U.S. Trustee Program (USTP), the Justice Department announced today. Elliott has 31 years of federal service, the majority of which has been with the USTP. Since 2011, she has served as Deputy Director and General Counsel for the Executive Office for U.S. Trustees in Washington, D.C. As the USTP’s chief legal officer, she has overseen the formulation of the USTP’s national legal policies in consumer and business cases as well as litigation strategies in significant…
U.S. Sees Highest Large-Company Bankruptcies In 15 Years With 446 Filings:
Credit & Collection e-newsletter of 8/21/25 reports that the United States has recorded 446 large company bankruptcy filings in the first seven months of 2025, the highest year-to-date total in 15 years. The tally, compiled by the Kobeissi Letter and S&P Global Market Intelligence, represents a 12% increase above levels seen during the 2020 pandemic year. Per the Kobeissi Letter, the number of bankruptcies has already surpassed full-year totals for 2021 and 2022, when 405 and 373 firms, respectively, filed for court protection. More data shows that July alone accounted for 71 bankruptcies, up from 66 in June, and the…
Americans are carrying a record amount of household debt
FOX Business’ Gerri Willis reports on the alleged ‘out-of-control’ costs associated with going back to school and how much families may expect to spend this year. Americans are increasingly turning to their credit cards to cover everyday expenses, with debt hitting a new record high at the end of June, according to a New York Federal Reserve report published Tuesday.
Americans Owe A Record $1.14 Trillion Dollars In Credit Card Debt [as reported in 8/15/25 Credit & Collection e-newletter]
In the three-month period from April to June, total credit card debt rose to $1.14 trillion, an increase of $27 billion, or about 1%, from the previous quarter, according to the report. It marks the highest level on record in Fed data dating back to 2003. Credit card delinquencies continued to rise from their pre-pandemic levels in the second quarter. As of June, about 9.1% of outstanding credit card debt was in some stage of delinquency, up from 8.5% the previous quarter. The rise in credit card usage and debt is particularly concerning because interest rates are astronomically high right…
National Association of Consumer Bankruptcy Attorneys (“NACBA”) Applauds Introduction of H.R. 4444 (Titled: “The Student Loan Bankruptcy Improvement Act of 2025”) in the US House of Representatives
7/18/25 National Association of Consumer Bankruptcy Attorneys (“NACBA”) Applauds Introduction of H.R. 4444 (Titled: “The Student Loan Bankruptcy Improvement Act of 2025”) in the US House of Representatives, which proposes to make more bankruptcy debtors eligible to discharge their student loans in bankruptcy: Washington, D.C. — The National Association of Consumer Bankruptcy Attorneys (NACBA) proudly announces its strong support for H.R. 4444, the Student Loan Bankruptcy Improvement Act of 2025, introduced by Congressman J. Luis Correa (CA-46). This vital legislation takes long-overdue action to restore fairness and access to justice for millions of Americans burdened by student loan debt. For…
U.S. Recurring Jobless Claims Jump to Highest Since End of 2021
Recurring applications for U.S. unemployment benefits rose to the highest level since the end of 2021, adding to evidence that it is taking unemployed Americans longer to find a new job, Bloomberg News reported. Continuing claims, a proxy for the number of people receiving benefits, advanced to 1.96 million in the week ended May 31, according to Labor Department data released today. Meanwhile, a measure of new filings that smooths volatility climbed to its highest level since August 2023. The spike in recurring claims coincides with a slowdown in hiring, suggesting that out-of-work people are struggling to find employment. However,…
Chapter 7 Bankruptcy Filings in April 2025
American Bankruptcy Institute on 5/2/25 reports that US nationwide Consumer Chapter 7 Bankruptcy Filings in April 2025 are an Increase of 16% above April 2024 US nationwide consumer Chapter 7 bankruptcy filings; and total nationwide bankruptcy filings (all Chapters, consumer and business bankruptcy filings) in April 2025 are an increase of 9% above April 2024 total US bankruptcy filings The 30,961 individual chapter 7 filings in April 2025 represented a 16 percent increase over the 26,781 filings recorded in April 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. Total individual bankruptcy filings…
Growing Number of Americans Are Using Buy Now, Pay Later Loans
Credit & Collection e-newsletter of 4/28/25 reports: A growing number of Americans are using buy now, pay later loans (BNPL loans) to buy groceries, and more people are paying those bills late, according to new Lending Tree data released Friday. The figures are the latest indicator that some consumers are cracking under the pressure of an uncertain economy and are having trouble affording essentials such as groceries as they contend with persistent inflation, high interest rates and concerns around tariffs. In a survey conducted April 2-3 of 2,000 U.S. consumers ages 18 to 79, around half reported having used buy…
Notice: All dollar amounts in US Bankruptcy Code increased by 13.2% on 4/1/25
Every 3 years, the dollar amounts in the US Bankruptcy Code, 11 USC 101 et seq, are adjusted for inflation. On 4/1/25, all the dollar amounts in the US Bankruptcy Code adjusted for inflation. Because there has been a total of 13.2% inflation in the past 3 years (last adjustment before 4/1/25 was on 4/1/22) the dollar amounts in the U.S. Bankruptcy Code each increased by 13.2%. Chapter 13 bankruptcy, and “SubV” Chapter 11 bankruptcy each have debt limits. A person cannot file Chapter 13 bankruptcy (individual wage earner repayment plan bankruptcy) or SubV Chapter 11 bankruptcy, unless dollar amount…
Debt Collection Activities Through the Treasury Offset Program (TOP)
The Social Security Administration (SSA) announced on Thursday that it will immediately resume debt collection activities through the Treasury Offset Program (TOP) that had been paused since 2020, reports Credit and Collection e-newsletter of 3/23/25. Why It Matters The move marks a shift in agency policy as the SSA looks to strengthen program integrity and reduce financial shortfalls. It comes as part of President Donald Trump‘s broader initiative to reduce government spending and eliminate inefficiencies. The Department of Government Efficiency (DOGE), established under his administration, has played a key role in identifying areas for budget reductions across federal departments and…