Although consumer bankruptcy filings are the lowest they have been in 20 years, the filing numbers are being forecasted to increase in 2023. A significant update was provided by the Department of Justice in November regarding the dischargeability of federal student loans in bankruptcy cases (https://www.justice.gov/opa/pr/justice-department-and-department-education-announce-fairer-and-more-accessible-bankruptcy). This update came after various courts around the US began challenging the legality of President Biden’s student loan forgiveness plan (most notably, the injunction issued by the United States Court of Appeals for the 8th Circuit). Reports indicate that when this issue reaches the Supreme Court of the United States, it will likely be struck down by the conservative majority.
On a positive note, the November 2022 filings for Chapter 11 bankruptcies increased 74% over the November 2021 filings.
On a procedural note for anyone that practices bankruptcy, effective on December 1, 2022, there were several amendments to the Federal Rules of Bankruptcy Procedure and Official Bankruptcy Forms (https://www.ohsb.uscourts.gov/news/amendments-federal-rules-bankruptcy-procedure-and-official-bankruptcy-forms).
