postings by Bob Lawless

Come Talk to the ABI Consumer Bankruptcy Commission at NABT

posted by Bob Lawless

As careful Credit Slips readers will remember, I was inflicted on the American Bankruptcy Institute's Commission on Consumer Bankruptcy as the Commission's reporter. Things are off to a roaring start. Taking the suggestions of many different stakeholders in the consumer bankruptcy system, the Commission has developed a list of topics and assigned them to different committees. In turn, the committees have broken down into working groups to study the issues.

The Commission and its committees already have had two successful public meetings, hearing from persons at the annual meeting for the National Association of Consumer Bankruptcy Attorneys (NACBA) in Orlando, Florida, and from persons at the annual seminar for the National Association of Chapter 13 Trustees (NACTT) in Seattle, Washington. The Commission web site has videos and, where available, written statements from both the NACBA meeting and the NACTT meeting.

The next public meeting is for the Commission's Committee on Chapter 7, which will occur on September 15 at the annual meeting for the National Association of Bankruptcy Trustees in New Orleans, Louisiana. Come talk to us. Subject to time availability, we hope to allow participants to make statements of about five minutes each. Written statements are very welcome and encouraged. Further details appear in the call for participation on the Commission web site. For full consideration, requests to participate must be received by September 6.

Commentary on the CFPB Arbitration Rule

posted by Bob Lawless

A few weeks ago, Adam did a great post about the CFPB's new arbitration rule, analyzing whether we would get a veto from the Financial Stability Oversight Council (FSOC). My own, much more modest effort, explaining the arbitration rule for our local NPR station (WILL) appeared this morning. With all the daily nonsense out of Washington, this story is falling through the cracks.

Gilbert Index Q&A

posted by Bob Lawless

The Gilbert Index blog was kind enough to feature Credit Slips in a Q&A. For those of you who are interested in how Credit Slips came about, check it out.

An Explanation for the Low Bankruptcy Rates: Debt

posted by Bob Lawless

Yesterday, I noted the U.S. bankruptcy filing rate of 2.38 per 1,000 persons is at historic lows. The next question is always why. In this post, I am going to try to walk through an explanation in four graphs. The upshot is that consumer debt is low but rising. As I like to say, it takes years of study to come to the conclusion that people file bankruptcy because they are in debt. This is not to say that other factors are not contributors -- unemployment, general economic conditions -- but the primary macroeconomic driver of bankruptcy filings is the amount of debt on household balance sheets.

Continue reading "An Explanation for the Low Bankruptcy Rates: Debt" »

Bankruptcy Filings Holding Steady for the First Half of 2017

posted by Bob Lawless

2017 Projected Filings from JuneUsing data from Epiq Systems, we appear to be on track for 774,000 bankruptcy filings for the 2017 calendar year. That would basically be the same rate of filings as in 2016 when total filings were just under 772,000. This calculation comes from a simple extrapolation. There were just under 400,000 bankruptcy filings for the first six months of this year. To get an estimate of what filings will be for the entire year, we cannot simply double the six-month figure because bankruptcy filings tend to be higher in the first part of a year. In the past two years, the first six calendar months have seen 51.6% of the total filings for the year. Thus, just under 400,000 filings for the first six months of a calendar year would imply about 774,000 filings for the entire year.

Continue reading "Bankruptcy Filings Holding Steady for the First Half of 2017" »

Eleven Years

posted by Bob Lawless

Section 1111The number eleven has a lot of significance in the bankruptcy world. The Bankruptcy Code is, of course, title 11 of the United States Code. There is chapter 11. And, within chapter 11, one can make the eleven-eleven election under section 1111 -- an election that is as difficult to explain in a bankruptcy classroom as it is to understand it.

The number eleven has new significance. Credit Slips launched on this date in 2006, making us eleven years old today. I hope that doesn't mean we have to repeat middle school.

How to Get Involved with the ABI Consumer Commission

posted by Bob Lawless

As Jason Kilborn noted last month, the American Bankruptcy Institute (ABI) has formed a Commission on Consumer Bankruptcy. More information about the Commission is available on its web site including the unfortunate news that it got saddled with me as the reporter. We very much invite input and suggestions about the Commission's work. Right now is an especially good time to get involved as the Commission sets its agenda.

The ABI has charged the Commission with "researching and recommending improvements to the consumer bankruptcy system that can be implemented within its existing structure. These changes might include amendments to the Bankruptcy Code, changes to the Federal Rules of Bankruptcy Procedure, administrative rules or actions, recommendations on proper interpretations of existing law and other best practices that judges, trustees and lawyers can implement."

Continue reading "How to Get Involved with the ABI Consumer Commission" »

Secured Transactions in the Funny Pages

posted by Bob Lawless

From the always wonderful Pearls Before Swine, some humor for the secured lending crowd.

Katie, Remember Us When

posted by Bob Lawless

It is with incredibly mixed feelings that I pass along to our readers that Professor Katie Porter is leaving our blog. Katie was one of the original bloggers on Credit Slips back in 2006. There were a number of us who were working together in an intensive data-collection phase of a research project, and a blog was a great way to have some intellectual interaction that was more than how to word a survey question. It worked and somehow the blog stayed around. Katie's posts are insightful, thought-provoking, and witty. We will miss her contributions.

If we have to lose one of our founding bloggers, it is at least for a very exciting reason. Katie is leaving Credit Slips is to focus her efforts on her recently announced candidacy for the U.S. House of Representatives in California's 45th Congressional District. Speaking for myself, I think Katie would be fantastic in Congress. She is whip-smart and a determined advocate for consumers. Former Credit Slips blogger Elizabeth Warren put it succinctly: "Katie is a fighter!" I wish Katie nothing but success in her campaign.

We also have made a change to the way we list our blog contributors. At one time, it made sense to distinguish between more frequent and less frequent contributors. Now, everyone is simply listed as a contributor. This change is long overdue, and I had been meaning to make it for a while. My day job seems to keep interfering with the many ideas I often have to improve the blog.

Bankruptcy Fees in the Trump Budget

posted by Bob Lawless

Thanks a tweet to the sharp-eyed Drew Dawson at the University of Miami, I saw this article in Politico that among the surprises in Trump's budget is an increase in bankruptcy filing fees (see item 5). Well, this seemed important to those of us in the bankruptcy world so I thought I would check it out. It proved surprisingly more difficult in this day and age than one would think to get a PDF copy of the Trump budget outline, but I finally found one. I am not sure the characterization of an increase in "bankruptcy filing fees" is entirely accurate.

Trump Budget Screen Grab

Above is a screenshot from p. 30 of the document (clicking on it should bring up a full-sized image in a popup window). Keep in mind this is an outline of the underlying budget document. What appears to be proposed in an increase in the quarterly U.S. Trustee fee for chapter 11 filers and not a general increase in all bankruptcy filing fees or even the chapter 11 filing fee. Of course, the paragraph does characterize it as an increase in bankruptcy filing fees so maybe there is such a broad increase in the budget itself.

Does anybody know for certain?

Arbitrating the Discharge

posted by Bob Lawless

The Second Circuit currently has a pending case (Anderson v. Credit One Bank, No. 16-2496) that raises the question of whether an alleged violation of the bankruptcy discharge injunction is subject to a predispute arbitration agreement. Professors Ralph Brubaker and Bruce Markell have joined me on an amicus brief explaining why the answer has to be "no." You can download the brief from SSRN. (UPDATE 3/3: The link was broken but should be fixed now.)

Bankruptcy specialists know the "discharge" means the forgiveness of prebankruptcy debts. The "discharge injunction" comes from section 524 of the Bankruptcy Code, which states that the entry of a discharge shall operate as an injunction against attempts to collect prebankruptcy debts. Indeed, one of the things the brief tries to make clear is that the "discharge" and "discharge injunction" are different concepts. Historically, filing bankruptcy gave rise to a discharge, but there was no enforcement of that discharge in the federal court that issued it. Rather, the debtor could plead the discharge as an affirmative defense in a state-court collection action.

Continue reading "Arbitrating the Discharge" »

Bankruptcy Filings for 2017 -- Let's Say 767,000

posted by Bob Lawless

2016 Annual Filings ChartAccording to Epiq Systems, there were 771, 894 total U.S. bankruptcy filings in 2016, a decline of 5.8% from 2015. The overall annual decline in 2015 was 10.0% and was 11.8% in 2014.  As I noted yesterday, the rate of decrease is decreasing.

At the beginning of 2016, I projected 780,000 filings for the year. That forecast was only 1.0% off. Pride goeth before a fall. Here is my thinking for 2017.

Continue reading "Bankruptcy Filings for 2017 -- Let's Say 767,000" »

Bankruptcy Rate Rises in December . . . A Blip and Not a Blip

posted by Bob Lawless

2016 Month Over Month TrendsSomething happened in the U.S. bankruptcy courts that had not happened since October 2010. The daily filing rate increased on a year-over-year basis. There were 56,394 filings in December 2016 as compared to 53,844 in the previous December. Also, because the 2016 filings were spread over one less business day than in 2015, the rise represented a 9.7% increase in the daily filing rate. The lighter-red line in the graph to right the shows just how dramatic the spike was.

Continue reading "Bankruptcy Rate Rises in December . . . A Blip and Not a Blip" »

ABI Podcast on Race and Chapter 13

posted by Bob Lawless

In October, a panel at the National Conference of Bankruptcy Judges explored the role of race and implicit bias in the bankruptcy system. Called "The Color of Money: The Implications of Race and Ethnicity in Addressing Debt," the panel included a presentation by yours truly about our research exploring the intersection of race and chapter 13. If you were not at NCBJ, the American Bankruptcy Institute was kind enough to ask me to do a podcast about our research and the updates to it since its original appearance in 2012. The podcast is a little over seventeen minutes long if you want to give it a listen.

ABA Journal Blawg 100!

posted by Bob Lawless

HonoreeBadgeCredit Slips is honored to have been selected as part of the ABA Journal's Blawg 100, their annual list of the top 100 blogs about law and lawyering. It is our second year in a row for inclusion on the list.

We appreciate all of our readers and are humbled by the time you spend with us. The comments to the posts continually demonstrate that one of the things that makes this blog work is our readership. Thanks for visiting.

Contributors

Current Guests

Follow Us On Twitter

Like Us on Facebook

  • Like Us on Facebook

    By "Liking" us on Facebook, you will receive excerpts of our posts in your Facebook news feed. (If you change your mind, you can undo it later.) Note that this is different than "Liking" our Facebook page, although a "Like" in either place will get you Credit Slips post on your Facebook news feed.

News Feed

Categories

Bankr-L

  • As a public service, the University of Illinois College of Law operates Bankr-L, an e-mail list on which bankruptcy professionals can exchange information. Bankr-L is administered by one of the Credit Slips bloggers, Professor Robert M. Lawless of the University of Illinois. Although Bankr-L is a free service, membership is limited only to persons with a professional connection to the bankruptcy field (e.g., lawyer, accountant, academic, judge). To request a subscription on Bankr-L, click here to visit the page for the list and then click on the link for "Subscribe." After completing the information there, please also send an e-mail to Professor Lawless (rlawless@illinois.edu) with a short description of your professional connection to bankruptcy. A link to a URL with a professional bio or other identifying information would be great.

OTHER STUFF

Powered by TypePad