Could you please give a broad overview of the state of bankruptcy and fraud litigation in your jurisdiction? The current state of bankruptcy litigation is different from what we have seen in the past. As a bankruptcy practitioner for over 30 years, I have seen several highs and lows in the number of bankruptcy filings. In 2021, bankruptcy filings were at their lowest levels since the mid1980s. There were fewer than 400,000 filings nationally. Through the first half of 2022, filings have remained stagnant. What we can project for the rest of 2022 and into 2023 will depend on many factors, including the state of the economy, interest rates, the job market, the availability of credit, and bankruptcy legislation. We should also not discount the results of the midterm elections in November. Depending on the makeup of Congress we may see either consumer- or creditor-friendly legislation. The role of the Consumer Financial Protection Bureau could undergo a major change. What recent rulings in this area of law have the potential to set significant precedents? The US Supreme Court has become more active in hearing bankruptcy cases over the last few years. Last year, the Supreme Court issued a ruling in City of Chicago v. Fulton that had an immediate impact on debtors and creditors in Chapter 13 cases. The Court held that creditors do not violate the automatic stay by retaining possession of property obtained pre-petition when the case is filed. Although the case dealt with The State of Bankruptcy and Fraud Litigation in 2022 EXPERT INSIGHT 53 Following a pandemicinduced shake-up in business practices and solvency, the future for creditors remains uncertain. We hear this month from Alan Hochheiser, principal at Maurice Wutscher, who sheds light on how bankruptcy and fraud litigation is developing in the lead-up to 2023. What trends are emerging, and what questions remain? Expert Insight
RkJQdWJsaXNoZXIy Mjk3Mzkz