Consumer Debt Delinquency Surges to Five-Year High as Student Loan Payments Pause Expires​​​

The overall share of delinquent consumer debt in the U.S. rose to 4.3% in the first three months of the year, according to the Federal Reserve Bank of New York’s quarterly report on household debt and credit, Fortune reported. That marked its highest level since 2020 and an increase from 3.6% in the prior quarter. Missed payments surged even though new delinquency rates for nearly all loan types held steady, apart from a notable exception: Almost 8% of aggregate student debt was reported in “serious delinquency,” or 90 days past due, compared to less than 1% at the end of last year. “After a five-year hiatus, student loan delinquency has returned to the pre-pandemic ‘normal’ with more than [10%] of balances and roughly six million borrowers either past due or in default,” the New York Fed wrote in a blog post Tuesday. “The ramifications of student loan delinquency are severe.” Read more.​​​​​​

Retail Sales Slow in April After a Spending Splurge as Americans Sought to Front-Run Tariffs​​​

U.S. consumers spent slightly more at retail stores last month after ramping up their shopping in March to get ahead of tariffs, the Associated Press reported. Sales at retail stores and restaurants rose just 0.1% in April from March, the Commerce Department said Thursday. That is much lower than the previous month's 1.7% gain, which reflected a surge in car sales as consumers sought to get ahead of President Trump's 25% duty on auto imports that went into effect this month. In April, sales were flat or down for many retailers: They plunged 2.5% at sporting goods stores, which saw prices jump last month, according to the government's inflation report earlier this week. Sales dropped 0.4% at clothing stores, while they ticked down 0.2% at health and personal care stores and slipped 0.1% at auto dealers. 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.
 

Retailers Rush to Save U.S. Summer Shopping Season​​​

U.S. retailers including Walmart and several clothing brands are racing to secure China-made merchandise for the busy summer shopping season starting in late May after Washington and Beijing agreed to temporarily slash tariffs, Reuters reported. The agreement on Monday to lower U.S. tariffs on shipments from China to 30% from 145% for the next three months prompted a restart in orders and shipments for sundresses, bathing suits, clogs and sunscreens from Chinese factories, according to logistics company Portless, which helps U.S. e-commerce brands import goods from China via air. U.S. businesses largely rely on ocean shipping, but it can take between 30 and 60 days for ocean-shipped goods to reach the U.S. from China, depending on the destination and ship size, although orders for the summer can start in late winter or early spring to allow for the manufacturing of new designs, said John Harmon, managing director of technology research at Coresight Research. U.S. retailers and apparel companies typically begin shipping merchandise from China at least two to three months before the summer season starts on Memorial Day, which this year falls on May 26. But after U.S. President Donald Trump hit Beijing with retaliatory and fentanyl tariffs totaling 145% on April 9, several U.S. companies paused their orders. Container bookings from China to the U.S. fell nearly 50% in the last week of April, according to data provided to brokerage TD Cowen by container-tracking firm Vizion. Read more.​​​​​​

U.S. Weekly Jobless Claims Unchanged Amid Stable Labor Market​​​

The number of Americans filing new applications for unemployment benefits was unchanged last week, but job opportunities are becoming more scarce for those out of work as economic uncertainty from tariffs discourages businesses from boosting hiring. Initial claims for state unemployment benefits held steady at a seasonally adjusted 229,000 for the week ended May 10, the Labor Department said today. Claims have moved in a 205,000-243,000 range this year, consistent with a historically low level of layoffs. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 9,000 to a seasonally adjusted 1.881 million during the week ending May 3, the claims report showed. Read more.​​​​​​

U.S. Manufacturing Output Falls in April on Weak Auto Production​​​

Factory output dropped 0.4% last month after an upwardly revised 0.4% gain in March, the Federal Reserve said today, Reuters reported. Production at factories increased 1.2% on a year-over-year basis in April. President Donald Trump's shifting tariffs policy poses significant headwinds to manufacturing, which accounts for 10.2% of the economy and relies heavily on imported raw materials. Motor vehicle and parts output plunged 1.9% last month after increasing in the prior two months, likely as automakers tried to stay ahead of tariffs. Durable manufacturing production fell 0.2%. Nondurable manufacturing production decreased 0.6%, with most industries posting declines. Read more.​​​​​​

Fed's Powell Says U.S. May Be Entering Period of More Frequent and Persistent 'Supply Shocks'​​​

Federal Reserve Chair Jerome Powell said today that the U.S. may be entering a period of more frequent supply shocks and volatile inflation, warranting more transparent communication practices from the central bank, YahooFinance.com reported. "A critical question is how to foster a broader understanding of the uncertainty that the economy generally faces," Powell said in his speech in Washington, D.C., predicting that "we may be entering a period of more frequent, and potentially more persistent, supply shocks." That, he said, will be a "difficult challenge for the economy and for central banks." He said higher interest rates adjusted for inflation may reflect the possibility that inflation could be more volatile going forward than in the intercrisis period of the 2010s. Read more.​​​​​​

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.​​​​​​

Applications Being Accepted Through June 2 for NCBJ/ABI Trial Skills Workshop in Chicago​​​

NCBJ and ABI will again offer an intensive, full-day workshop designed for bankruptcy practitioners to build trial skills and increase confidence for better outcomes for clients. This learn-by-doing program on Sept. 17 in Chicago is limited to 20 attorneys with 12 or fewer years of practice. Interact with 15 sitting federal judges over breakfast and lunch (included) at the U.S. District Courthouse in Chicago, and network with other participating bankruptcy attorneys. Applications must be received by June 2! Click here for more information and to submit an application.​​​​​​

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!

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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