Top Academics to Gather on Wednesday abiLIVE Webinar to Examine Third Circuit's Decision in LTL Management​​​

A panel of top academics on a special abiLIVE webinar on Wednesday will examine the Third Circuit's decision in the case of LTL Management LLC, the subsidiary of Johnson & Johnson created to file in chapter 11 to deal with talc and asbestos claims arising from the sale of Johnson’s Baby Powder. What are the key points of the decision, and what legal steps can J&J take to settle roughly 40,000 cancer lawsuits concerning its talc-based products? Register for this webinar for FREE.

U.S. Weekly Jobless Claims Drop to Nine-Month Low​​​

The number of Americans filing new claims for unemployment benefits dropped to a nine-month low last week as the labor market remains resilient despite higher borrowing costs and mounting fears of a recession this year, Reuters reported. The surprise decline in weekly jobless claims reported by the Labor Department on Thursday raised cautious optimism that the economy could skirt a recession or just experience a shallow and short downturn. Federal Reserve Chair Jerome Powell told reporters on Wednesday that "the economy can return to 2% inflation without a really significant downturn or a really big increase in unemployment." Initial claims for state unemployment benefits dropped 3,000 to a seasonally adjusted 183,000 for the week ended Jan. 28, the lowest level since April 2022. It was the third straight weekly decline in applications. Unadjusted claims slipped 872 to 224,356 last week. There were notable declines in applications in Kentucky, California and Ohio, which offset increases in Georgia and New York. Read more.

Survey: Nearly Two-Thirds of Americans Are Living Paycheck to Paycheck​​​

A new survey found that the number of Americans living paycheck to paycheck increased over the last year, with nearly two-thirds of Americans reporting that they do so, The Hill reported. About 64 percent of consumers said they were living paycheck to paycheck at the end of 2022, according to a report from Pymnts and LendingClub. The report found that this number is about 9.3 million more than the previous year and includes about 8 million people making more than $100,000 per year. The research also found that 4 out of 5 consumers expect their personal finances to improve over the next year, which is up 7 percentage points from July 2022. About one-third think that their personal finances will stay the same, and 27 percent believe their situations will get worse. Those making more than $100,000 per year are the most likely group to think that their prospects will improve. For those who believe their financial situations will worsen, most cited inflation and economic uncertainty as main reasons. About 75 percent of those who think their finances will worsen said inflation was the top reason, and about one-third cited economic uncertainty. Read more.

Americans Struggling to Make Car Payments Is at Highest Level Since Great Recession​​​

A growing number of Americans are falling behind on their car payments, an ominous sign for the U.S. economy as high car prices and persistent inflation strain household budgets, FoxBusiness.com reported. Car repossessions tumbled in the early days of the pandemic when the government sent millions of Americans stimulus checks. But they have progressively ticked higher as sky-high prices for used and new cars alike forced consumers to take out bigger loans. In December, the percentage of subprime auto borrowers who were at least 60 days late on their bills climbed to 5.67% — a major increase from a seven-year low of 2.58% in April 2021, according to Fitch Ratings. It marks the steepest rate of Americans struggling to make their car payments since the 2008 financial crisis. Prices for used and new vehicles surged last year as a result of a semiconductor shortage, as well as other COVID-19-induced disruptions in the global supply chain. Although there were fewer cars being produced, consumer demand remained strong, driving prices higher. Prices started to subside toward the end of 2022, but the average cost of a new car is still near $50,000 — a record. Rapidly rising interest rates have compounded the pain of higher car prices. The average new auto loan rate jumped to 8.02% in December, up from 5.15% one year ago, according to Cox Automotive. That, combined with steeper stick prices, pushed new-vehicle affordability to the lowest level of 2022. Read more.

CFPB Lawsuit Seen as Warning Shot to Subprime Auto Lenders​​​

A federal lawsuit against subprime auto lender Credit Acceptance Corp. is making waves, posing existential questions for the company and potentially upending some corners of the auto finance industry, American Banker reported. Consumer advocates hope the suit will curtail lending practices they consider predatory. They point to the Consumer Financial Protection Bureau's allegations that Credit Acceptance deceives subprime borrowers into taking out inflated loans they can't repay, ultimately leading to their cars being repossessed and harming their already low credit scores. The company is fighting the lawsuit in a case that some observers see as a warning shot to other subprime auto lenders. CFPB critics say that the agency's push to overhaul lending practices could ultimately hurt lower-income consumers by drastically limiting their access to auto loans. Read more.

Volunteer Today to Become a Preliminary-Round Judge or Brief-Grader for the Duberstein National Bankruptcy Moot Court Competition!

The Duberstein National Bankruptcy Moot Court Competition, now in its 31st year and widely recognized as one of the nation’s preeminent moot court competitions, will be held in New York on March 4-6, 2023. Fifty-three teams from law schools across the country will compete through written briefing and oral argument. Volunteers are needed for brief-graders and judges for the preliminary rounds of the Competition on Saturday, March 4th, and Sunday, March 5th. To find out more and to volunteer, please click here.

Next ABI "Look Ahead for 2023" Discussion on Wednesday Evening to Focus on International Issues and Asset Sales

ABI's "Look Ahead for 2023" half-hour online programs continue on Feb. 8 at 5 p.m. ET with experts providing perspectives on international issues and asset sales. Register for free! 

Miss any of the previous "Look Ahead for 2023" discussions? Watch replays here!

USTP to Resume Debtor Audits in March 2023

Effective March 13, 2023, the USTP will resume its designation of individual chapter 7 and chapter 13 cases for audit. These audits had been suspended in March 2020 due to public health concerns associated with the COVID-19 pandemic. As authorized in section 603(a) of Public Law 109-8, the USTP established procedures for independent audit firms to audit petitions, schedules and other information in consumer bankruptcy cases. Pursuant to 28 U.S.C. § 586(f), the USTP contracts with independent accounting firms to perform audits in cases designated by the USTP. Click here for more information.

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Don't Miss Three Key abiLIVE Webinars Coming Up in February!

February will feature three excellent abiLIVE webinars with experts addressing important insolvency topics. Programs include:

- February 8: “Examining the Third Circuit's Decision in LTL Management: Where Does J&J Go from Here?”

- February 9: "Lighthouse Resources: A Dive into the 2021 Asset Sale of the Year"

- February 13: "First Day by Reorg: A Review of Chapter 11 Filings in 2022"

- February 15: "All In: The Role of Active Allyship in Diversity, Equity, Inclusion & Belonging"

- February 28: "Student Loans in 2023: Is Bankruptcy Finally a Viable Option?"

Registration for all webinar programs is complimentary!

Applications for Judgeship Vacancy in W.D. Texas (Austin) Being Accepted Until Feb. 6

The U.S. Court of Appeals for the Fifth Circuit is seeking applications from all highly qualified candidates for a 14-year appointment as a U.S. Bankruptcy Judge for the Western District of Texas at Austin. The selection process will be confidential and competitive. The current annual salary is $213,992. Only those persons with a law degree whose character, experience, ability and impartiality qualify them to serve in the Judicial Branch should apply. Persons shall be considered without regard to race, color, sex, religion, disability or national origin. The qualification standards and the application form (Parts I and II) are available at www.ca5.uscourts.gov. Six completed applications (Parts I and II) should be mailed to Lorie A. Robinson, Circuit Executive, U.S. Court of Appeals, Fifth Circuit, 600 Camp Street, Room 100, New Orleans, Louisiana 70130. A PDF version of the completed application form (Parts I and II) must be emailed to wtxbankruptcy@ca5.uscourts.gov (link sends e-mail). The deadline for filing a completed application (Parts I and II) is Monday, February 6, 2023. Click here for the full notice.

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