Student Loan Borrowers at Risk of Garnished Wages​​​

Defaulted student loan borrowers will need to come up with a plan in the next few weeks as the Trump administration plans to restart involuntary collections for those who have missed payments, The Hill reported. After five years, the Department of Education announced on Monday that those in default, or those who have not paid on their loans for more than 270 days, could see financial consequences starting May 5, including blocked federal payments such as Social Security, and eventually even garnished wages. The changes are currently set to affect more than 5 million borrowers. After they’ve missed payments on their loans for 90 days, a borrower is put into delinquency, and after 270 days, the loan goes into default. After those first 90 days, missing student loan payments can affect credit scores, but going into default has more serious financial consequences, including hindering someone’s ability to get future loans. But it’s the prospect of involuntary collections, including the garnishing of federal payments and eventually even private salaries, that is raising the most attention in the Trump administration’s announcement. Senior department officials reportedly said there will be a required 30-day notice to defaulted borrowers before wage-garnishing would begin later this summer. Read more.​​​​​​

U.S. Filings for Jobless Benefits Inch Up as Labor Market Remains Strong Despite Fears of Downturn​​​

U.S. applications for jobless benefits rose modestly last week as businesses continue to retain workers despite fears of a possible economic downturn, the Associated Press reported. Jobless claim applications inched up by 6,000 to 222,000 for the week ending April 19, the Labor Department said Thursday. Despite showing some signs of weakening over the past year, the labor market remains healthy, with plenty of job openings and relatively few layoffs. Earlier this month, the government reported that U.S. employers added a surprisingly strong 228,000 jobs in March. While the unemployment rate inched up to 4.2%, that’s still a healthy figure by historical standards. Thursday's report also showed that the four-week average of applications, which evens out some of the week-to-week volatility, ticked down by 750 to 220,250. The total number of Americans receiving unemployment benefits for the week of April 12 declined by 37,000 to 1.84 million. 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.
 

Analysis: Private Equity World Engulfed by Perfect Storm​​​

Even before President Trump’s tariff chaos, buyout firms had been struggling to sell their portfolio companies and return money to anxious investors. Now recession fears and market turmoil have brought dealmaking to a near standstill, according to a Wall Street Journal analysis. The longer the deal logjam lasts, the harder it will be for firms to hand money back to clients, such as pensions and endowments. The amount of unrealized value the funds owe their investors has hit record levels, according to an analysis by credit-ratings firm Moody’s Ratings. That makes it tougher for the firms to raise new funds. “We aren’t even in a recession now, and we’re already at a point where things are incredibly challenging,” said Hugh MacArthur, chairman for private equity at Bain & Co. Firms are sitting on a record 29,000 companies worth $3.6 trillion, half of which they have owned for five years or more, he said. Clients are becoming less willing to make new investments, and buyout fundraising dropped by almost 25% last year, he said. 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. Apply today.​​​​​​

Third Circuit Invites Public Comments by May 15 for Reappointment of Bankruptcy Judge Carlota M. Böhm​​​

The current term of office of the Hon. Carlota M. Böhm, U.S. Bankruptcy Judge for the Western District of Pennsylvania in Pittsburgh, is due to expire on Nov. 27, 2025. The U.S. Court of Appeals for the Third Circuit is considering the reappointment of Judge Böhm to a new 14-year term of office. Members of the bar and the public are invited to submit comments for consideration by the court of appeals regarding the reappointment of Judge Böhm. All comments will be kept confidential and should be directed to one of the following addresses: by email at Bohm_Reappointment@ca3.uscourts.gov or by mail to Margaret A. Wiegand, Circuit Executive, 22409 U.S. Courthouse, 601 Market Street, Philadelphia, PA 19106. Comments must be received no later than May 15, 2025.​​​​​​

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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