Borrowers Staring Down Student Loan Repayments After Years of High Inflation​​​

Student loan borrowers are frustrated and anxious only three months away from being forced to resume payments after a three-year hiatus, The Hill reported. For the roughly 40 million Americans who owe the federal government student loans, interest will begin accruing on that debt in September. Payments will be due again at the beginning of October. As the three-year pause comes to a close and the Supreme Court determines the fate of student loan forgiveness, borrowers are scrambling to put together a budget and figure out their loan situation as they worry the impending debt will delay other goals they have for the future. The Supreme Court is set to rule this week on whether Biden’s executive order wiping out up to $20,000 in student loans for millions of Americans is constitutional.​​​​​​ ​​​Read more.

Report: Small Businesses Struggling to Make Rent​​​

Rising rents are taking their toll on small business owners nationwide, according to Alignable’s June Small Business Rent Report, The Hill reported. More than half of small business owners polled by the small business network Alignable reported that their rent was higher in June than it was six months ago. Some noted that their rents have increased by 20 percent. Alignable’s June Small Business Rent Report is based on responses from 4,801 randomly selected small business owners polled between June 5-27, along with data from 18 months of previous surveys. Close to 40 percent of small business owners struggled to make their payments on time, tying April for the highest delinquency rate so far this year.​​​​​​ ​​​Read more.

Nominations Due Tomorrow for ABI’s “40 Under 40”!

Nominations are due tomorrow for the 2023 class of ABI's "40 Under 40" program! Do you know of a dynamic, up-and-coming insolvency professional committed to growth and excellence both at work and in your community? Submit an application here.
 

U.S. Weekly Jobless Claims Post Biggest Drop in 20 Months​​​

The number of Americans filing new claims for unemployment benefits fell last week by the most in 20 months, offering an upbeat picture of the labor market that could see the Federal Reserve continuing to raise interest rates to cool demand, Reuters reported. The unexpected decline in applications reported by the Labor Department today reversed a recent jump, which had left initial jobless claims over the prior three weeks hovering at levels last seen in October 2021. The elevated readings had led some economists to conclude that layoffs were picking up as the economy started to feel the impact of the Federal Reserve's hefty interest rate increases. The U.S. central bank, which has raised its policy rate by 500 basis points since March 2022, signaled this month that two additional rate hikes were likely warranted this year. Initial claims for state unemployment benefits decreased 26,000 to a seasonally adjusted 239,000 for the week that ended June 25. The drop was the largest since October 2021. Recent policy changes in Minnesota making tens of thousands of hourly paid school workers eligible for state unemployment benefits during the summer break accounted for some of the increase in claims in the first three months of June. Fraud in some states also was probably an issue. Unadjusted claims dropped 17,843 to 233,048 last week. Claims tumbled 10,108 in California and plunged 9,187 in Texas. They dropped 3,263 in Pennsylvania, while Minnesota reported a 2,387 decline in applications. These decreases offset a 6,013 surge in Connecticut and a 5,206 jump in New Jersey.​​​​​​ ​​​Read more.

Report: One-Third of Americans Are Hiding Their Credit Card Debt​​​

One-third of Americans with credit card debt say no one else knows how much they owe, according to a new report, The Hill reported. The nation’s credit card balance hovers at around $1 trillion, and interest rates routinely top 20 percent. A typical American household now carries around $10,000 in card debt, by one recent WalletHub estimate. A rising share of cardholders carry a balance from one month to the next — and many consumers, it seems, would rather not share those facts. Two in five Americans think credit card debt is embarrassing, according to a new consumer credit card report from personal finance site NerdWallet. Credit card debt carries a growing stigma, polls suggest. An earlier NerdWallet survey found that one-third of married Americans with credit card debt haven’t told their spouse what they owe. In the new report, two-fifths of respondents said it would be all right to have a credit card a partner doesn’t know about.​​​​​​ ​​​Read more.

Latest ABI Industry Viewpoints: Failing Health Care Systems and Medical Debt Driving Patients into Bankruptcy​​​

The latest episode of ABI's Industry Viewpoints series features ABI Editor-at-Large Bill Rochelle talking with January M. Bailey of Prelle Eron & Bailey, PA (Wichita, Kan.) about the commonalities between the parallel issues of failing health care systems (especially in a rural context) and debtors bankrupted by medical debt.



Bailey was the moderator of the "A Bankruptcy Crisis Hiding in Plain Sight: The Juxtaposition of Failing Health Care Systems with Consumer Patients Driven into Bankruptcy by Medical Debt" panel at ABI's 2023 Annual Spring Meeting.​​​​​​ ​​​Read more.

Deadline Approaching for Norton Judicial Excellence Award

All nominations for the annual Judge William L. Norton, Jr. Judicial Excellence Award must be received no later than July 17, 2023. This award, co-sponsored by the American Bankruptcy Institute (ABI) and Thomson Reuters, honors a distinguished bankruptcy judge whose career has embodied the same dedication to the insolvency community as did that of the award’s namesake. You can view a list of the past honorees here. The award will be presented at the annual meeting of the National Conference of Bankruptcy Judges (NCBJ) in October. To nominate a candidate for the award, please download the nomination form here, and email it to Kathryn Copeland at kathryn.copeland@thomsonreuters.com.

USTP Looking for a Chapter 11 Trial Attorney​​​

The U.S. Trustee Program has a job opening for a chapter 11 trial attorney within the Executive Office for the U.S. Trustee. For the full job description, application guidelines and other information, please click here.​​​​​​ ​​​All applications must be received by July 13.

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