U.S. Weekly Jobless Claims Increase for Second Straight Week​​​

The number of Americans filing new applications for unemployment benefits last week increased for a second straight week, pointing to softening labor market conditions amid mounting economic headwinds from tariffs, Reuters reported. Initial claims for state unemployment benefits rose 8,000 to a seasonally adjusted 247,000 for the week ending May 31, the Labor Department reported Thursday. The number of people receiving benefits after an initial week of aid, a proxy for hiring, slipped 3,000 to a seasonally adjusted 1.904 million during the week ending May 24, the claims report showed. A separate report from global outplacement firm Challenger, Gray and Christmas showed that U.S-based employers announced 93,816 job cuts in May, down 12% from April. Layoffs were, however, 47% higher from a year ago. Read more.​​​​​​

Latest Episode of “Women in Restructuring” Features Chief Bankruptcy Judge Stacey G. C. Jernigan​​​

Chief Bankruptcy Judge Stacey G. C. Jernigan (N.D. Tex.; Dallas) joins host Sarah Foss of Debtwire to discuss her career, interesting things she's seen in her courtroom and insights to pass along to young practitioners. Listen to the podcast here.​​​​​​

Subchapter V Experiences to Share? ABI Wants to Hear from You!

ABI is continuing its study of Subchapter V, and it needs your help! We are particularly interested in learning more about the real-world impact of Subchapter V. So our question is, do you have a story about a distressed business or creditor who has used or benefited from the subchapter? If so, could that case still happen under the lower debt cap for Subchapter V debtors? Any and all responses are welcome. Submit your story at https://abi.org/subvstories.
 

Trump Administration Pauses Garnishment of Social Security Checks for Defaulted Student Loans​​​

The Trump administration said that it's pausing the garnishment of Social Security benefits for student loan borrowers who have defaulted, CBS News reported. This means a temporary pause on a decision announced in April to restart collections on student loans in default. On May 5, the restart policy was put into action when the Education Department began involuntary collections through the Treasury Department's offset program, which claws back overdue debts by garnishing such federal payments as tax refunds and Social Security checks. The halt comes after the Trump administration last month retreated from another type of Social Security benefit clawback, when it announced it would only take 50% of a person's monthly check to recover overpayments, down from a previously announced 100%. In that case, advocates for senior citizens had expressed concern that the policy would lead to hardship, given that one-third of Social Security recipients rely on their monthly benefit check for at least 75% of their income. The Education Department said that it hasn't offset any Social Security payments because of student debt since it resumed collections on May 5. Read more.​​​​​​

U.S. Borrowers Face Higher Interest If Trump’s “Revenge Tax” Becomes Law​​​

A measure in President Donald Trump’s tax and spending bill that’s meant to penalize foreign investors may also raise interest costs for some U.S. borrowers, Bloomberg News reported. The so-called “Section 899” provision takes aim at nations such as Canada, the U.K. and France that have digital services taxes or other corporate tax rules that the U.S. deems unfair. Investors and companies from those countries may see gradually higher tax rates on income they earn from U.S. assets, which some analysts have called a “revenge tax.” Section 899 would affect loan interest payments in a way that would hurt some U.S. companies, according to legal experts. Many lending agreements require borrowers to cover such tax hikes if they’re enacted after the deal has been signed. Read more.​​​​​​

Analysis: Retirement Savings Rise for Americans in Q1 2025​​​

The average savings rate in 401(k) plans rose to a record high 14.3% of income in the first three months of this year, according to a Fidelity Investments analysis of the millions of accounts it manages, the Wall Street Journal reported. This is just a shade below the 15% annual savings rate that financial advisers often recommend over a four-decade career. Savings rates are increasing even though account balances fell in volatile markets earlier this year. Most are staying the course, said Mike Shamrell, vice president at Fidelity Investments, which released the data on Wednesday. Average 401(k) savings rates have risen from 13.5% in 2020, according to Fidelity, the nation’s largest 401(k) administrator with about 25,000 client companies. Today’s savings rate includes a 4.8% contribution from employers, and the rest from employee contributions. In the first quarter, 17.4% of people with 401(k) accounts at Fidelity increased their savings rate, while 5% decreased. Less than 1% stopped saving altogether. (Subscription required.) Read more.​​​​​​

Commentary: Report Sheds Light on Legal Fees in Delaware Chancery Court*​​​

A new study making the rounds in boardrooms — and loudly promoted by the prominent venture capitalist Bill Gurley — finds reasons for Corporate America to reconsider its reliance on Delaware courts, according to a commentary in the New York Times DealBook blog. The study, authored by Stanford Law Prof. Joseph Grundfest, tallied every shareholder case since 2000 in which lawyers won fee “multipliers” of seven times (“septuples”) or 10 times (“decuples”) their normal hourly rate from big corporations. The study found:

- Delaware produced 21 septuples and 14 decuples, almost matching the entire federal system on septuples and nearly triple on decuples.

- This trend has increased over the past five years: Septuple fee awards have been 23 times more common in Delaware than in federal court. Decuples were 57 times more common.

- One payout for a lawyer practicing before Delaware’s Court of Chancery worked out to an astonishing $35,000 an hour. Some lawyers are walking away with multipliers of 66 times their standard rates.

- Just two chancery court judges handed out a majority of those supersize awards.. 
Read more.​​​​​​

*The views expressed in this commentary are from the author/publication cited, are meant for 
informative purposes only, and are not an official position of ABI.

Free abiLIVE on June 11 to Examine Asset-Recovery Issues and Strategies in Latin America​​​

The first in a series of abiLIVE webinars hosted by ABI's International Committee focusing on insolvency topics across geographies, this session will delve into issues and strategies affecting asset recovery. Hear from professionals active in countries across Latin America who will explain what legal, financial and logistical challenges they face in recovering assets, both domestically and across borders, and the tips and tools they use to overcome obstacles. Register for FREE!

Unlock Bankruptcy Law Essentials from Top Industry Professionals with Restructuring Masterclass Program​​​

Restructuring Masterclass is an online, on-demand series of classes specifically designed to cover all the bankruptcy essentials. This program provides a foundation in bankruptcy law for both lawyers and business professionals alike, and sessions are taught by an outstanding faculty of experts who present practice tips and the basic concepts that every professional dealing with insolvency needs to know. Learning the fundamentals of bankruptcy law is an essential practice component for a variety of professions. Subscribe today at restructuringmasterclass.com to explore more than 40 expertly crafted courses, with new sessions being added monthly.​​​​​​

Apply to Become an ABI Journal Coordinating Editor​​​

The ABI Journal Editorial Board is seeking qualified candidates to serve in 2026 as coordinating editors. These editors are responsible for finding authors for specified columns. The ABI Journal has more than 30 columns that run throughout the year. In order to ensure a broad range of submissions, coordinating editors are asked not to solicit or select directly from their firms for all or most of the slots. For more information, visit abi.org/abi-journal. If you are interested, send your resume, a brief letter of interest and a list of preferred columns to ABI Managing Editor Elizabeth A. Stoltz at estoltz@abi.org by June 23. ABI’s Editor-in-Chief and Vice President-Publications will make their selections based on the positions available. ABI membership is required to serve on the editorial board. 

Interested in Judgeship Opportunities? Don't Miss this Open Forum on June 11 Hosted by the U.S. Bankruptcy Court for the Central District of California!​​​

The U.S. Bankruptcy Court for the Central District of California, Riverside Division invites ABI members who might be interested in applying for a bankruptcy judgeship, or learning more about the process, to a free lunch program via Zoom on June 11, hosted by the sitting Riverside Division judges. The judges will share their experiences on the bench and answer questions about their experiences. A representative from the Ninth Circuit Office of the Circuit Executive also will be doing a presentation about the application process and answering questions. Time permitting, attendees may be given a tour of the bankruptcy court. Questions will be collected from attendees in advance of the program for the Q&A session. Click here to learn more.​​​​​​

Application and Nomination Period for ABI’s 2025 “40 Under 40” Open Through June 30​​​

The ABI "40 Under 40" annual program continues to highlight the best up-and-comers in the industry. If you are, or know of, a dynamic insolvency professional who is committed to growth and excellence both professionally and in your community, this is one opportunity not to be missed! Applications are due June 30. Click here for more information and to submit a nomination or application. 

Access All Current ABI Titles Through ABI’s New Digital Book Subscription!​​​

One of the best collections of bankruptcy books is now available as an annual digital subscription! ABI’s bankruptcy library opens the door to a constantly evolving area of the law, and our books are continually being updated by top industry professionals. Auto-renewing annual subscriptions guarantee immediate access to this invaluable resource, which is comprised of fully searchable content that’s always available on any digital device. Convenient pricing plans for individual and institutional subscribers offer immediate and unlimited access to our entire digital library of books — nearly 100 treatises! Plus, you get advanced access to new and revised books as soon as they are published — all included in your annual subscription. Learn more!

Nomination Deadline Is Aug. 22 for ABI's International Matter of the Year Award​​​

ABI’s International Committee is accepting nominations for its Fourth Annual ABI International Matter of the Year Award. For criteria, eligibility and other information on the award, please click here.​​​​​​

Have an Idea for a Topic for an ABI Conference Session? Submit Your Proposal via ABI’s “Call for Abstracts” Page!​​​

ABI has launched an online portal for professionals to submit proposals for educational sessions at future ABI conferences. Submitters can describe their proposed topic, outline the session’s focus and learning goals, suggest speakers, and provide contact information via the portal’s detailed form. The portal can be accessed here.

All submissions will be reviewed by an internal Education Committee, which will contact the submitter to ask questions as needed and to discuss the status of the proposal. Submissions will be reviewed on a rolling basis.

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