The Bankruptcy Law Firm, Prof. Corp.
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…
American Bankruptcy Institute (“ABI”) e-newsletter, of 8/5/25, reports that July 2025 Commercial Chapter 11 Bankruptcy Filings Increased 78 Percent over Last Year (2024)
Commercial chapter 11 filings totaled 911 in July, an increase of 78 percent over the 512 filings in July 2024, according to data provided by Epiq AACER, the leading provider of U.S. bankruptcy filing data. The overall July commercial filing total of 2,997 represented a 26 percent increase from the July 2024 commercial filing total of 2,371. Small business filings, captured as subchapter V elections within chapter 11, increased 30 percent to 206 in July 2025 from 159 the previous year.
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…
Biden-Era Rule on Medical Bill Reporting on Credit Reports
Credit & Collection e-newsletter of 7/16/25 reports: A US District Court Judge Sean Jordan’s ruling, on 7/15/25, that the Consumer Financial Protection Bureau (CFPB) does not have the authority to enact a Biden-era rule on medical bill reporting on credit reports, could force individual states to take up the issue of whether credit reporting agencies (Experiean, Equifax, TransUnion) can be forced to remove reporting about unpaid medical bills from individuals’ credit reports, or can be forced not to put reporting about unpaid medical bills on individuals’ credit reports. U.S. District Judge Sean Jordan, a 2019 appointee of President Donald Trump,…
US Supreme Court’s decision in Roman Catholic Archdiocese of San Juan, Puerto Rico v. Acevedo Feliciano, Doesn’t Preclude Annulling the Stay, Eleventh Circuit Says; there is a Circuit Split on this issue
On an issue where the lower courts are split, the Eleventh Circuit held that the Supreme Court’s decision in Roman Catholic Archdiocese of San Juan, Puerto Rico v. Acevedo Feliciano, 589 U.S. 57 (2020), does not prevent bankruptcy courts from annulling the automatic stay under Section 362(d)(1). In Acevedo, the Supreme Court strictly limited the ability of federal courts to enter orders nunc pro tunc. In his July 8 opinion, Chief Circuit Judge William H. Pryor, Jr., adopted the position taken by the Ninth Circuit Bankruptcy Appellate Panel in a 2020 opinion by Bankruptcy Judge William J. Lafferty, III. In…
In re GOL Linhas Aéreas Inteligentes SA, 225-4610 (S.D.N.Y. June 5, 2025)
The Office of US Trustee has already appealed the following US District Court, New York decision– In re GOL Linhas Aéreas Inteligentes SA, 225-4610 (S.D.N.Y. June 5, 2025)– to the US Court of Appeals for the 2nd Circuit, to test the question of, whether after the US Supreme Court Purdue Pharma decision a chapter 11 plan can provide non-debtors get releases, unless creditors OPT OUT, of that provision, instead of NO non-debtor releases, unless creditors Opt-In (ie affirmatively agree to non-debtors being granted releases. The debtor agreed not to raise equitable mootness on an appeal only challenging nondebtor opt-out releases.…
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,…
Chenault-Vaughan Family Partnership Ltd. V. MDC Reeves Energy LLC (In re MTE Holdings LLC), 23-1916 (3d Cir. May 7, 2025), appeal 23-1916
Third Circuit Holds: Magistrate Judges May Issue Final Orders on Bankruptcy Appeals if all parties to the appeal consent to that (which does not happen very often) The Third Circuit splits from Seventh and Tenth Circuit opinions dating from 1987 and 1990. Creating a circuit split, the Third Circuit held that “a magistrate judge may enter final judgment in a bankruptcy appeal” if there is “consent of the parties and referral by a district court.” The Seventh and Tenth Circuits had ruled to the contrary in 1987 and 1990, holding that magistrate judges may not enter final orders in bankruptcy…
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…
Manion v. Strategic Funding Source Inc. (In re Manion), ___BR___ (B.A.P. 9th Cir. March 19, 2025); BAP appeal 24-1008
Fraudulent ‘Omission’ Isn’t a ‘Statement’ for Nondischargeability Purposes, BAP Says If a fraudulent omission were a ‘statement,’ the BAP explains why nondischargeability would be almost impossible to prove. For nondischargeability, the Ninth Circuit Bankruptcy Appellate Panel wrote an opinion explaining why a fraudulent omission falls into the orbit of a “false representation” under Section 523(a)(2)(A), not “a statement respecting the debtor’s . . . financial condition.” The difference is critical. As a “false representation,” a creditor subject to a fraudulent omission has an easier path to nondischargeability. The individual debtor was under contract with a major brewer to operate mobile…