How the Student Loan Crisis Will Show Up in the Economy​​​

Millions of Americans had their student loan payments put on pause during the pandemic. Now they are back on the hook again, the Wall Street Journal reported. For borrowers, this means that every month, money that they presumably used to spend elsewhere is going to pay off debt instead. Many who aren’t paying are now considered delinquent or defaulted, a status that sinks credit scores. Around 5.6 million borrowers were marked newly delinquent on their student loans in the first three months of this year. That will strain personal finances. At the same time, it creates fresh challenges for the broader economy. Borrowers have been required to repay their student loans for some months now. But just this month, the Trump administration began putting millions of defaulted student loan borrowers into collections and threatened to confiscate their wages, tax refunds and federal benefits. The collections process was standard before the pandemic, but it is still likely to be a shock to those who haven’t experienced it before, or who forgot what it was like. Economists at Morgan Stanley estimated this month that payments this year will rise by a collective $1 billion to $3 billion a month. That could trim 2025 gross domestic product by about 0.1 percentage point, they said. (Subscription required.) Read more.​​​​​​

Justices’ Fraud Ruling Invites Fights over Unresolved Issues​​​

The Supreme Court’s ruling affirming a state contractor’s convictions for wire fraud is a victory for the government — but it also provides new fodder for defendants battling similar charges, according to a Bloomberg Law analysis. The high court made clear that prosecutors need not show economic harm to prove wire fraud, reversing a decades-long trend of the Supreme Court siding with defendants and winnowing the federal fraud statutes. But white-collar attorneys say that the more interesting part of the decision might be the legal issues the majority didn’t resolve: materiality and injury. Justices Neil M. Gorsuch and Clarence Thomas both wrote concurrences that read more like dissents, highlighting gaps in the majority opinion that prosecutors will need to contend with going forward, said Brandon Essig, a former prosecutor who’s now a partner at Lightfoot, Franklin & White LLC. Gorsuch’s concurrence, which addresses injury to the victim, is particularly notable because it gives a new, compelling framework for distinguishing everyday misrepresentations from actionable lies through a new, benefit-of-the-bargain injury standard, Essig said. The majority suggests in dicta that the injury requirement is met if the defendant deprived the victim of property via deception. But Gorsuch said that formulation “needlessly risks turning the federal wire-fraud statute into a weapon for punishing victimless crimes.” Read more.​​​​​​

Rent-Setting Algorithms Find Legal Lifeline​​​

Data company RealPage is confronted with state and local efforts to ban its algorithmic pricing system for landlords in the rental-apartment market, the Wall Street Journal reported. Now, a provision buried in House Republicans’ mega tax bill is throwing the company a lifeline. The bill that the House passed last week would prevent state and local governments from regulating artificial intelligence and automated decision systems for 10 years. That decade-long moratorium faces an uphill battle in the Senate. And the bill would do little to halt class-action lawsuits that allege RealPage violated antitrust and consumer-protection laws. But if the House tax bill becomes law, it would provide RealPage with significant legal relief. The provision would effectively muzzle some of the dozens of local and statewide efforts to outlaw algorithmic pricing systems, including RealPage. Federal, state and local regulators accuse rental-data algorithms such as RealPage and Yardi Systems of collecting and crunching confidential data to help landlords illegally collude on pricing. That was partly to blame for the double-digit rent surges of the pandemic era, they allege. RealPage has denied the allegations and has said that landlords aren’t required to use its price recommendations. (Subscription required.) 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.
 

U.S. Weekly Jobless Claims Rise More than Expected as Labor Market Eases​​​

The number of Americans filing new applications for unemployment benefits increased more than expected last week, while the jobless rate appeared to have picked up in May as labor market conditions continue to ease, Reuters reported. Initial claims for state unemployment benefits rose 14,000 to a seasonally adjusted 240,000 for the week ended May 24, the Labor Department said today. The number of people receiving benefits after an initial week of aid, a proxy for hiring, increased 26,000 to a seasonally adjusted 1.919 million during the week ending May 17, the claims report showed. The elevated so-called continuing claims reflect companies' hesitance to increase headcount because of the economic uncertainty. Continuing claims covered the period during which the government surveyed households for May's unemployment rate. The jobless rate was at 4.2% in April. Many people who have lost their jobs are experiencing long spells of unemployment. The median duration of unemployment jumped to 10.4 weeks in April from 9.8 weeks in March. 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.​​​​​​

Don't Miss NYIC's 105th Annual Banquet Awards on June 4​​​

The New York Institute of Credit invites ABI members to attend its 105th Annual Banquet Awards for the presentation of the Conrad B. Duberstein Memorial Award, Founders Recognition Award, and the Leadership in Credit Education Awards. Enjoy an evening of cocktails, networking and a presentation you won't want to miss! Click here to find out more and to register. 

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. 

Monday Deadline: Apply 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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