U.S. Weekly Jobless Claims Fall, but Unemployment Rolls Swelling​​​

The number of Americans filing new applications for jobless benefits fell last week, but the unemployment rate could rise in June as more laid-off people struggle to find work, Reuters reported. Initial claims for state unemployment benefits dropped 10,000 to a seasonally adjusted 236,000 for the week ended June 21, the Labor Department said on Thursday. Technical factors, as well as the start of the summer school breaks, have accounted for some of the recent rise in claims, which have pushed them to the upper end of their 205,000-250,000 range for this year. Non-teaching staff in some states are eligible to file for unemployment benefits during the summer holidays. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 37,000 to a seasonally adjusted 1.974 million during the week ending June 14, the highest level since November 2021, the claims report showed. Read more.​​​​​​

Council of Economic Advisers Chair: Tariffs May Be Here to Stay, Negotiation Deadline Could Extend​​​

Nothing is set in stone on tariffs as President Trump's July 9 deadline approaches, YahooFinance.com reported. "My expectation would be that for countries that are negotiating in good faith and making progress, that rolling back the deadline makes sense," Council of Economic Advisers chairman Stephen Miran said. "I mean, you don't blow up a deal that's in process and making really good faith, sincere, authentic progress by dropping a tariff bomb in it." Miran said that after all deals are done and dusted, the aggregate tariff rate may not fall materially below the current 10% universal tariff. However, individual countries may fare better or worse. "A few countries may be making such aggressive concessions," he explained. "They convinced the president to lower tariffs below 10%. There are other countries that are just going to be stubborn and decide no. And then they'll have the 'Liberation Day' tariff snap back up on them." Read more.​​​​​​

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.
 

Texas, Oklahoma and Nevada Make Changes to Lure Business Amid Delaware’s ‘Dexit’ Concern​​​

Lawmakers in Texas, Oklahoma and Nevada have recently approved changes aimed at helping their states dip into the lucrative side of corporate litigation that Delaware, with a specialized court and business-friendly laws, has dominated as the world’s incorporation capital, Bloomberg News reported. Concerned that these changes may lure corporations away from Delaware, thereby causing the small state to lose millions in corporate franchise taxes, Delaware officials have responded with their own changes to solidify their status in the business world. In Texas, which opened a business court last year, there was bipartisan support for legislation diminishing shareholder powers and giving businesses more legal protections against shareholder lawsuits. Nevada lawmakers approved a corporation-friendly update to its business laws, also with bipartisan support, and separately moved toward asking voters to consider changing the state constitution to create a dedicated business court with appointed judges. Oklahoma also took action to get in the mix, as the Republican-led Legislature sanctioned the creation of business courts in its two most populous counties, a move the governor said would help Oklahoma become the most business-friendly state. Read more.​​​​​​

U.S. Renters Face Storm of Rising Costs​​​

Despite one of the more substantial surges of new apartment construction in decades, the benefits of growing supply have not trickled down to the most cost-burdened renters in the U.S., Bloomberg News reported. That’s the conclusion of Harvard’s Joint Center for Housing Studies, which this week released its annual State of the Nation’s Housing Report, one of the most in-depth studies linking housing costs and renter incomes. The researchers found that the portion of the country’s renters who face significant cost burdens has hit record levels — and the strain has moved up the income ladder. A full 65% of working-age renters can’t cover non-housing costs after monthly housing payments, according to a JCHS analysis. The number of cost-burdened renters, who spend more than the recommended 30% of their income on housing, hit an all-time high of 22.6 million Americans in 2023, with 12.1 million spending half or more of what they make on rent. Housing-induced financial instability is highest in Florida and in Western states. Among those making under $30,000 a year, 83% were rent-burdened, and surveys show they tend to have just $250 a month left after rent. But those with higher salaries are affected as well: 45% of Americans making $45,000 to $74,999 a year are rent-burdened, twice the 2001 rate. Read more.​​​​​​

U.S. Economy Shrank 0.5% in First Quarter on Import Surge Ahead of Tariffs​​​

The U.S. economy shrank at a 0.5% annual pace from January through March as President Donald Trump’s trade wars disrupted business, the Commerce Department reported today in an unexpected deterioration of earlier estimates, the Associated Press reported. First-quarter growth was weighed down by a surge of imports as U.S. companies, and households, rushed to buy foreign goods before Trump could impose tariffs on them. The Commerce Department previously estimated that the economy fell 0.2% in the first quarter. Economists had forecast no change in the department's third and final estimate. The January-March drop in gross domestic product — the nation’s output of goods and services — reversed a 2.4% increase in the last three months of 2024 and marked the first time in three years that the economy contracted. Imports expanded 37.9%, the fastest rate since 2020, and pushed GDP down by nearly 4.7 percentage points. Consumer spending also slowed sharply, expanding just 0.5%, down from a robust 4% in fourth-quarter 2024 and a sharp downgrade from the Commerce Department's previous estimate. Read more.​​​​​​

A TikTok Trend Promises to Erase Student Loan Debt. Here’s Why It Doesn’t Work​​​

TikTok videos, some with tens of thousands of views, are claiming that borrowers can have all their student loans erased by following a few simple steps. One TikTok video that has racked up more than 200,000 views begins: “This is how to delete your student loans.” Some videos claim that because the so-called Department of Government Efficiency, the Trump administration’s federal cost-cutting initiative, gained access to student loan data, student borrowers can file a complaint about violation of privacy rights (under the Family Educational Rights and Privacy Act, known as FERPA) and have their student debt erased. Millions of borrowers face plunging credit scores. After years of Covid-era pauses on repayments and collections, the Department of Education resumed collections on defaulted student loans in May and warned that borrowers could be referred to debt collectors or enrolled in income-based repayment plans. If a borrower successfully disputes a loan on their credit report, they still have to repay, according to experts. FERPA does not apply in this case, said Megan Walter, an analyst at the National Association of Student Financial Aid Administrators. The proliferation of TikTok videos saying otherwise “makes me really nervous for the people who do not understand what this actually means,” Walter said. “While it may get removed temporarily or permanently, you still have an underlying debt obligation to the Department of Education or the lender,” she said. Read more.​​​​​​

Bipartisan Legislators Want More People to Shop Secondhand​​​

Reps. Sydney Kamlager-Dove (D-Calif.) and Nicole Malliotakis (R-N.Y.) launched a new caucus yesterday aiming to promote the re-commerce economy, looking in part to help platforms like eBay, Etsy and Depop, where consumers can buy and sell pre-owned items — often at hefty discounts, the Wall Street Journal reported. Among the U.S. representatives joining the caucus are Kevin Mullin (D-Calif.), Hillary Scholten (D-Mich.) and Brittany Pettersen (D-Colo.). The bipartisan initiative will back policies that extend the life cycle of a product, cut down on landfill waste and “encourage environmentally responsible commerce.” It will also aim to support small sellers on digital platforms and promote access to apps like Poshmark and OfferUp. Kamlager-Dove said she hopes to focus in part on reducing sales taxes on second-hand items and providing tax credits for companies adopting circular business models. For Malliotakis, one of the biggest concerns is tackling tax burdens for small businesses and resellers as well as fighting counterfeits, with the added benefit of cutting waste. The resell sector is expected to reach $1.04 trillion globally by 2035, up from $186 billion last year, according to Transparency Market Research, spanning everything from fashion to electronics, furniture and cars. The luxury market is also seeing a drastic shift. About 27% spent online on luxury apparel was at fashion resellers last year, according to a report from Mastercard. (Subscription required.) Read more.​​​​​​

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Applications and Nominations Due Monday for ABI’s 2025 Class of “40 Under 40” ​​​

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 Monday! 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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