Senators Introduce Amendment to Defense Appropriations Bill to Renew Higher Debt Limits for Subchapter V and Chapter 13
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Senate Judiciary Committee Chairman Charles Grassley (R-Iowa) and Ranking Member Dick Durbin (D-Ill.) on July 31 introduced an amendment to S.2296, the "National Defense Authorization Act for Fiscal Year 2026," that would renew the higher debt limits for subchapter V and chapter 13 that expired last June. Specifically, the Grassley-Durbin amendment would extend the Bankruptcy Threshold Adjustment and Technical Corrections Act for two more years and contains a retroactivity provision for cases commenced on or after the June 21, 2024, sunset. The amendment is included with more than 600 submitted for consideration with S.2296 when the Senate returns from its August recess.
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Cincinnati-Area Practitioners: Don't Miss Next Week’s 2025 Midwest Regional Bankruptcy Seminar!
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Cincinnati-area practitioners will not want to miss the 2025 Midwest Regional Bankruptcy Seminar, being held on Tuesday, Aug. 12, at the Westin Cincinnati! The advisory board has created a day-long seminar with focused sessions on the biggest issues in insolvency practice. Catch up with friends and meet new colleagues at the return of this favorite event, then conclude the day’s programming with a networking reception. Register today!
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U.S. Jobless Claims Edge Up; Productivity Improves in Second Quarter
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The number of Americans filing new applications for unemployment benefits ticked up to the highest level in a month last week, suggesting the labor market was largely stable even though job creation is weakening and it is taking laid-off workers longer to find new jobs, Reuters reported. Initial claims for state unemployment benefits for the week ended Aug. 2 rose 7,000 to a seasonally adjusted 226,000, the highest level since the week ending July 5, the Labor Department said on Thursday. The number of people receiving benefits after an initial week of aid, a proxy for hiring, rose to a seasonally adjusted 1.974 million during the week ending July 26, the claims report showed. That was the highest level of continued claims since November 2021, and the increase of 38,000 from the previous week was the largest since late May. Meanwhile, the Labor Department also said worker productivity rebounded more than expected in the second quarter, easing a surge in labor costs at the start of the year. Nonfarm business sector productivity increased 2.4% in the April-June period after declining by 1.8% in the first three months of the year, the BLS reported. Economists polled by Reuters had expected productivity to rise by 2.0%.
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New York Fed Finds Rise in Longer-Run Expected Inflation in July
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Americans' longer-term inflation outlook deteriorated in July even as households boosted their views on the current and future state of their respective financial situations, according to data released on Thursday by the New York Federal Reserve, Reuters reported. In its latest Survey of Consumer Expectations, the regional Fed bank said the expected level of inflation five years from now stood at 2.9% in July, rising from 2.6% in the prior month and the highest reading since March. Meanwhile, expected inflation a year from now rose to 3.1% from 3% in June, while three-year-ahead expected inflation held steady at 3%. In its report on Thursday, the New York Fed found that home prices were expected to rise 3% on a year-ahead basis, while expected future inflation levels across a range of other measures were mixed. The report said that labor market views also were mixed in July, and the expectation that unemployment will be higher a year from now hit its lowest level since January. Households in July said that credit is harder to get but will be easier to obtain a year from now. Survey respondents also said their current and expected financial situations improved in July compared to June.
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American Consumers Are Getting Thrifty Again
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Consumer spending stagnated in the first half of this year, according to federal data issued last week, and the CEOs of Chipotle Mexican Grill, Kroger and Procter & Gamble, among others, are telling investors that their customers are more strapped — or appear to feel that way, the Wall Street Journal reported. Shoppers, wary about inflation, job expectations and their personal finances, are dialing down their spending to focus on the essentials and forego the extras, executives said. “There’s a lot of consumer anxiety,” said Dirk Van de Put, chief executive of Mondelez International, which makes Oreo cookies, Ritz crackers and Cadbury chocolate. Global sales of snacks rose last quarter, but U.S. sales fell a lot. (Subscription required.)
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Trump to Sign Order Opening Way for Alternative Assets in 401(k)s, Official Says
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U.S. President Donald Trump is expected to sign an executive order on Thursday that aims to allow private equity, real estate, cryptocurrency and other alternative assets in 401(k) retirement accounts, a White House official said, Reuters reported. The order smoothes the way for private equity and other fund managers to tap into trillions of dollars of Americans' retirement savings. It could open up a vast new funding source to managers of so-called alternative assets outside of stocks, bonds and cash, though critics say it also could bring too much risk into retirement investments. "The order directs the Securities and Exchange Commission to facilitate access to alternative assets for participant-directed defined-contribution retirement savings plans by revising applicable regulations and guidance," the White House official said on condition of anonymity. The order directs the Labor Secretary to consult with her counterparts at the Treasury Department, the SEC and other federal "regulators to determine whether parallel regulatory changes should be made at those agencies," the official said.
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Unlock Bankruptcy Law Essentials from Top Industry Professionals with Restructuring Masterclass Program
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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 regularly.
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Additional Upcoming ABI Events
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ABI/NCBJ Webinar, August 12, 2025
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abiLIVE Webinar, September 4, 2025
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abiLIVE Webinar, September 4, 2025
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Mergers and Acquisitions Webinar Series, September 10, 2025
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Marriott Marquis, Chicago, Ill., September 18-19, 2025
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Online Networking, September 30, 2025
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Online Networking, September 30, 2025
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JW Marriott Washington, Washington, D.C., October 22-23, 2025
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New on ABI’s Bankruptcy Blog Exchange: The Genius Act and the Law of Unintended Consequences: Are Stablecoin Issuers Going to Be Boxed Out of Bankruptcy?
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On July 18, 2025, President Trump signed into law the Guiding and Establishing National Innovation for U.S. Stablecoins Act, otherwise known as the GENIUS Act, to establish a comprehensive regulatory framework for stablecoins in the U.S. However, the GENIUS Act also made several important changes to the U.S. Bankruptcy Code that give stablecoin-holders significant power and leverage over bankruptcies filed by stablecoin operators, but also threaten those bankruptcies with administrative insolvency, according to a recent blog post.
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Thanks to our Presidential Partners
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