stage, we will see a bit of an uptick in consumer bankruptcy filings. In addition, the increase in interest rates could have a major effect on consumers as the payments on variable rate loans will rise. Coupled with supply chain issues and rising consumer prices for food, gas and other durable goods, higher rates may force consumers to either seek a fresh start through a Chapter 7 or a reorganisation under Chapter 13. What other noteworthy challenges currently exist for legal counsel and their clients in this area? The biggest challenge for legal counsel and their clients is uncertainty. Challenges facing creditors are whether losses are going to grow, how to address staffing automobiles, it has far-reaching effect on other types of property including funds frozen on bank attachments. Numerous courts around the county are addressing the fallout from this decision. These rulings will cause both creditors and debtors to rethink their strategies when a case is initially filed. We expect to see an increase in the number of motions for turnover of property. In what ways has the COVID-19 pandemic affected the bankruptcy and fraud litigation landscape? With the decreased number of bankruptcy filings, debtors’ attorneys and trustees are looking at ways to maintain or increase revenue. As a result, we have seen an increase in litigation of preference and fraudulent transfer actions, along with adversary complaints for violations of the Fair Debt Collection Practices Act and the Telephone Consumer Protection Act. The practice itself has changed with the utilisation of video and telephonic hearings. Cases that may not have been pursued due to cost are now being filed. If you can conduct hearings from your desk instead of traveling to court and waiting through dockets, it becomes much more economical for the client. We have seen creditors proceeding with more non-dischargeable actions. In Chapter 11 proceedings there has been greater representation at first meetings of creditors as attorneys do not need to travel to obtain information and question the debtor on more routine cases. Have these effects now died down, or have other effects proved to be permanent? As foreclosure and eviction moratoriums on the federal and state level have been lifted, we have not seen the so-called tsunami of bankruptcy filings that many had expected. I suspect, as more of the foreclosure cases get to the sale 54 LAWYERMONTHLY SEPTEMBER 2022 If you can conduct hearings from your desk instead of traveling to court and waiting through dockets, it becomes much more economical for the client.
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