Education Department Reopens Applications for Student Loan Repayment Plans​​​

The U.S. Education Department reopened online applications Wednesday for income-driven repayment plans for student loan borrowers, the Associated Press reported. The applications had been taken down in response to a February court ruling, which blocked the Biden administration’s Saving on a Valuable Education Plan and parts of other income-driven repayment plans. The materials’ removal had complicated the renewal process for borrowers already enrolled in repayment plans. The American Federation of Teachers had filed a lawsuit seeking to force the department to accept and process applications for repayment plans. The Trump administration needed to revise the income-driven repayment plan application in order to comply with the February ruling, said James Bergeron, acting undersecretary at the Education Department. While the online application was down, officials said there were no disruptions to the paper application process. Read more.

In related news, more than 9 million Americans could see “substantial declines” in their FICO scores in the coming months as delinquent student loans begin showing up on credit reports for the first time since the pandemic, according to a new analysis by the Federal Reserve Bank of New York. Read the full NY Fed report.​

CFPB Predicts Late Fee Lawsuit Settlement​​​

A federal court agreed to halt proceedings in a lawsuit against the Consumer Financial Protection Bureau for 30 days after agency lawyers said they’re optimistic about reaching an agreement with plaintiffs over the CFPB’s late fee cap rule, PaymentsDive.com reported. Plaintiffs include the U.S. Chamber of Commerce and the Consumer Bankers Association. U.S. District Court Judge Mark Pittman in Fort Worth, Texas, issued the stay March 13 in response to the CFPB’s request a day earlier, noting that the bureau’s acting director, Russell Vought, had only joined on Feb. 7. The CFPB said it’s “reviewing and considering its positions on various agency actions,” including the rule capping credit card late fees at $8, which the agency adopted in March 2024. The U.S. Chamber of Commerce, three Texas business groups, and two large bank associations sued in March 2024 to block the late fee rule. Two months later, Pittman issued a preliminary injunction to prevent the rule from taking effect, arguing that the CFPB had exceeded its statutory authority. The plaintiffs filed a motion for summary judgment last month, asking Pittman to vacate the rule, declare it unlawful and impose a permanent injunction. Since the change in administrations in Washington, the parties have begun discussing ways to resolve the litigation and will present Pittman with a status report in April, if they have not reached a resolution by then, said Mark Paoletta, the CFPB’s chief legal officer, and Deputy General Counsel Steven Bressler. Read more.

In related news, Rep. Andy Barr (R-Ky.) said yesterday that three bills he introduced will bring reforms to areas in which the Consumer Financial Protection Bureau (CFPB) has “abused its power and threatened — not helped — consumers in the process,” Pymnts.com reported. Barr, who is chair of the House Financial Services Committee’s Financial Institutions Subcommittee, said this in opening remarks prepared for delivery at a subcommittee hearing examining the current regulatory and legal landscape and the structure and funding of the CFPB. Read more.

For a replay, prepared witness statements and proposed legislation from yesterday's hearing, "A New Era for the CFPB: Balancing Power and Reprioritizing Consumer Protections," held before the House Financial Services Subcommittee on Financial Institutions, click 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.
 

Adjustment of Certain Dollar Amounts Applicable to Bankruptcy Cases, Effective April 1, 2025​​​

On April 1, 2025, automatic adjustments will be made to dollar amounts stated in certain sections of titles 11 and 28. The revised dollar amounts were published in the Federal Register on Feb. 4, 2025, Vol. 90, No. 22 at pages 8941-8942. (NOTE: The Federal Register issued a correction on Feb. 24, 2025 - click here for details.) The adjustments will apply to cases commenced on or after April 1, 2025.

There will be changes to several Official Bankruptcy Forms and two Director’s Forms to reflect the adjustments:

• Official Form 106C, Schedule C: The Property You Claim as Exempt;
• Official Form 107, Statement of Financial Affairs for Individuals Filing for Bankruptcy;
• Official Form 122A-2, Chapter 7 Means Test Calculation;
• Official Form 122C-2, Chapter 13 Calculation of Your Disposable Income;
• Official Form 201, Voluntary Petition for Non-Individuals Filing for Bankruptcy;
• Official Form 207, Statement of Financial Affairs for Non-Individuals Filing for Bankruptcy;
• Official Form 410, Proof of Claim;
• Director’s Form 2000, Required Lists, Schedules, Statements, and Fees; and
• Director’s Form 2830, Chapter 13 Debtor’s Certifications Regarding Domestic Support Obligations and Section 522(q). Read more.

All changes will be reflected in an updated edition of ABI’s Portable Bankruptcy Code, which will be for sale in our online store after April 1 and will also be available on site at the Annual Spring Meeting bookstore.

U.S. Weekly Jobless Claims Edge Lower​​​

The number of Americans filing new applications for unemployment benefits slipped last week, while the jobless rate appeared to have held steady in March, Reuters reported. Initial claims for state unemployment benefits fell 1,000 to a seasonally adjusted 224,000 for the week ended March 22, the Labor Department said on Thursday. Economists polled by Reuters had forecast 225,000 claims for the latest week. The government revised the claims data from 2020 through 2024, in line with normal practice. New seasonal factors, the model that it uses to strip out seasonal fluctuations from the data, were introduced for 2025. Seasonal factors for 2020 through 2024 were also revised. The number of people receiving benefits after an initial week of aid, a proxy for hiring, decreased 25,000 to a seasonally adjusted 1.856 million during the week ending March 15, the claims report showed. Read more.​​​​​​

Planned U.S. Auto Tariffs Shake Global Industry as Price Hikes, Job Losses Loom​​​

The United States' announcement of a 25% tariff on auto imports rippled throughout the world on Thursday, as global vehicle suppliers warned of immediate price hikes and dealers raised fears of job losses in countries with a large car industry, Reuters reported. Europe's auto industry called for a transatlantic deal to avert the tariffs announced by U.S. President Donald Trump on Wednesday, hammering stocks and testing already strained ties with allies. The new levies could add thousands of dollars to the cost of an average vehicle in the U.S., contradicting Trump's promises to combat consumer inflation and further dampening demand at a time when the sector is already struggling to manage the transition to electric cars. Germany's BLG Group, port logistics provider for one of the world's busiest auto shipping terminals in Bremerhaven, said it was planning for a 15% reduction in traffic as a result of the tariffs, which will take effect on cars from April 3 and auto parts from May 3. In Spain, the second-largest vehicle manufacturing country in the European Union, car dealer association Faconauto said a drop in demand for Spanish-made cars and parts could impact employment and future investment in the region. Read more.​​​​​

ASM Spotlight: Don't Miss the Luncheon and Keynote with Roben Farzad!​​​

Roben Farzad is an acclaimed journalist, broadcaster and author known for his sharp insights into the intersection of business and culture. As the host of the popular public radio program "Full Disclosure," he dives into the forces shaping industries, innovation and society. Don't miss the Annual Spring Meeting luncheon keynote, sponsored by Bates White and Skadden, Arps, Slate, Meagher & Flom LLP. Register today.

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. 

Listen to the Latest Episode of "Women in Restructuring" Podcast Featuring Kate Stephenson!​​​

This special International Women's Day episode features a discussion between host Sarah Foss of Debtwire and Kate Stephenson of Kirkland & Ellis International LLP. Based in London, Stephenson provides key insights on restructuring plan developments in the U.K. and a few lessons that she's learned in her international restructuring career. Click here to listen to this episode on Podbean or your preferred podcast service!​​​​​​

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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